Individuals' uncertainty about future social security benefits and portfolio choice
Little is known about the degree to which individuals are uncertain
about their future Social Security benefits, how this varies within the
US population, and whether this uncertainty influences financial
decisions related to retirement planning. To illuminate these issues, we
present empirical evidence from the Health and Retirement Study
Internet Survey and document systematic variation in respondents'
uncertainty about their future Social Security benefits by individual
characteristics. We find that respondents with higher levels of
uncertainty about future benefits hold a smaller share of their wealth
in stocks. Copyright © 2011 John Wiley & Sons, Ltd.
Journal of Applied Econometrics
Volume and page numbers
26 , 498 -519
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