Over the past 20 years, the United States has experienced a profound shift in the way that employment-based retirement benefits are delivered to workers. The traditional life annuity from a defined benefit (DB) plan has been largely replaced by lump sums from defined contribution (DC) plans. Along with investment risk, American workers are bearing a larger share of the longevity risk inherent in all retirement systems. As Americans benefit from longer lives, they are facing a harsh reality: will their retirement assets last long enough? Workers have embraced the flexibility offered by the widely available, and very popular, 401(k) plan. Often described as a do-it-yourself retirement program, these plans have allowed workers to accumulate significant levels of retirement savings. Employe...
... annuitization can frustrate the retiree's bequest motive. If most assets have been annuitized, there...
This research identified the characteristics of respondents in different quintiles of the income distribution using data from the three most recent Surveys of Consumer Finances (1998, 2001, and 2004). Using multinomial logistic regression, each quintile was compared to the middle quintile of the income distribution (41st to 60th income percentile) for each of the three surveys. The findings can be used by financial advisors and educators to compare the characteristics of their clients and their target audiences with a national sample and to help clients assess their current situation. However, an important first step is to discuss with clients what they want to achieve because each client is likely to have different goals.
... down their assets unless they have a bequest motive or strong preference for precautionary savi...
... depend on the presence and nature of a bequest motive. How individuals plan for leaving an estate...
Analysis of the motives for private bequests suggested that the number and size of bequests will probably grow if a consumption tax replaced the income tax. Bequests savings, which occur mostly among wealthy Americans, are motivated by altruism, precautionary savings, or in exchange for care by offspring. Regardless of motive, a theory that takes into account the double-level utility gains from increased bequests will enlarge the aggregate welfare gains resulting from a consumption tax.
...Ruling out what economists call "the bequest motive," we can assume that the retiree wants to s...
Although Malaysia has been identified as one of the highest saving countries in the world, only about 6.5 millions, or less than 30 percent of its total population, are protected under life insurance. In other words, a large portion of the society is still at the risk of suffering a reduction living standard in the wake of sudden loss of property or personal misfortune. It is therefore crucial and timely to provide additional information regarding the issue to consumers and firms in the industry. The purpose of this study is two folded, firstly we investigate the factors contributing to individual purchasing behaviour of life insurance in the market; secondly we examine whether there is any relationship between the efficiency of insurance companies and the expenditure on life insurance....
... is to maximise the utility and to offer a bequest for surviving individuals (spouse and dependents) ..., life insurance is able to satisfy two motives for saving; the general motive of saving is for re...
... of public assistance, understanding the motives for support of elderly persons remains an importan... the parent to obtain utility form her bequest. . (6.) This assumption is likely to hold for all ...
The notion that culture affects economic develop and therefore explains growth has pre-occupied social scientists for decades. Studies have shown mixed results, some supporting that economic growth is shaped (at least in part) by cultural factors while others conclude otherwise. Intuitively, culture should affect growth since culture defines the belief systems of the people making up the economy and thus would ultimately affect economic growth. But the question is how do we show that empirically? This paper attempts to answer that question by reviewing literature and examining more recent studies on the culture-growth dilemma then proceeds with summarizing issues regarding such studies as how they can possibly be resolved.
... "life cycle" and, more specifically, the bequest motive. Cultural variables matter here. Since savi...
... showed that a rational consumer with no bequest motives ideally would place all of his wealth into...
... invest in financial assets and resort to bequests in the next period. (10) . There are several probl...(20) The strategic motive (the first motive) fits in very well with the orth...
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