ESRI Research Seminar: Have the elderly in the UK saved “optimally” for retirement?

Venue: ESRI, Whitaker Square, Sir John Rogerson’s Quay, Dublin 2

Speaker: Cormac O’Dea, Institute for Fiscal Studies

Note: The presentation delivered by Cormac O'Dea at this seminar is now available to download here. 

Abstract:

Using a model where households can save in either a safe asset or in an illiquid, tax-advantaged pension, we assess the extent to which those who recently reached the state pension age in the UK have saved 'optimally' for retirement. The policy environment specified closely matches that prevailing in the UK. Using the model and administrative data linked with survey data from the English Longitudinal Study of Ageing, an optimal level of wealth is calculated for each household. This is compared to the levels of wealth observed in the data. Our results show that, for those born in the 1940s, the vast majority of households have wealth levels far greater than necessary to maintain their living standards into and through retirement.

Cormac O’Dea is an Associate Director in the Consumption and Saving sector of the Institute for Fiscal Studies (IFS).His current work focuses on household saving behaviour, retirement decisions and the distributional impact of spending on public services.

There is no fee for this event but please register your attendance using the following link.