The relationship between wealth and income during the entire economic life course is discussed. It is hypothesized that one’s desired per-period wealth at retirement, the hypothetical per-period wealth level which would induce retirement, is generally less than income while working, and greater than income while retired. Some evidence regarding this hypothesis is given using the 1992 Survey of Consumer Finances. Key Words: Life-cycle model, Retirement planning, Survey of Consumer Finances, Wealth

Download Journal

Comments are closed.