Tag: household consumption

Adult Son Moving Out Of Parent’s Home

The answer still seems elusive, but I think we’ve moved the ball. Much of the disagreement over whether the United States faces a retirement savings crisis hinges on different assumptions on how household consumption changes once the kids leave home.  “Optimal savings” studies, which assume that household consumption declines and savings increase when the kids…

Woodlawn,,Md,-,May,4:,Sign,Outside,Social,Security,Administration

Abstract Whether households prefer a constant, increasing, or decreasing path of consumption in retirement has important implications for our understanding of retirement adequacy.  Financial planners and researchers have often assumed that retirees would like to maintain their pre-retirement standard of living.  However, several studies suggest that retired households decrease their consumption over time.  This project…