What is an adequate standard of living during retirement?

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URL:	https://ub-madoc.bib.uni-mannheim.de/2137
URN:	urn:nbn:de:bsz:180-madoc-21370
Document Type:	Working paper
Year of publication:	2008
The title of a journal, publication series:	MEA Discussion Papers
Volume:	171
Place of publication:	Mannheim
Publication language:	English
Institution:	School of Law and Economics > Sonstige - Fakultät für Rechtswissenschaft und Volkswirtschaftslehre
MADOC publication series:	Veröffentlichungen des MEA (Mannheim Research Institute For the Economics of Aging) > MEA Discussion Papers
Subject:	330 Economics
Classification:	JEL: H55 D91 ,
Subject headings (SWD):	Altersversorgung , Lebensstandard , Rentner , USA , Niederlande
Keywords (English):	Life cycle preferences , pension reform , replacement rates , retirement saving
Abstract:	Many economists and policy-makers argue that households do not save enough to maintain an adequate standard of living during retirement. However, there is no consensus on the answer to the underlying question what this standard should be, despite the fact that it is crucial for the design of saving incentives and pension reforms. We address this question with a survey, individually tailored to each respondent's financial situation, conducted both in the U.S. and the Netherlands. Key findings are that adequate levels of retirement spending exceed 70 percent of working life spending, and minimum acceptable replacement rates depend strongly on income.