Deciding when and how to retire are amongst the most important decisions people can make. But do they make sound decisions and plan with foresight? Standard economic analysis says "yes": the essays in this volume raise serious doubts about such a comforting appraisal. The contributors, ranging from economists to psychologists to sociologists, suggest that retirement planning and decisions fall far short of the ideal.
Henry J. Aaron is a senior fellow in Economic Studies at the Brookings Institution, where he holds the Bruce and Virginia MacLaury Chair. Among his many books are Can We Say No? The Challenge of Rationing Health Care, with William B. Schwartz and Melissa Cox (Brookings, 2006), and Reforming Medicare: Options,Tradeoffs, and Opportunities, written with Jeanne Lambrew (Brookings, 2008).
"'Behavioral Dimensions of Retirement Economics'... takes a large step forward by providing a ready reference for a heterodox approach- behavioral economics- in addressing an important personal and public policy issue, retirement." John J. Hisnanick, U.S. Naval Academy, Annapolis, Review of Social Economy, 6/1/2000 |"A fascinating book for policymakers and scholars alike that applies insights from the new field of behavioral economics to the crucial decision of retirement. These psychologists, sociologists, and economists contend that people don't have the clear preferences often assumed, they lack full information, and they can't calculate the implications of all the options. As a result, they are influenced by their peers, and by how incentives are structured. In terms of Social Security reform, the implications are clear: don't expect people to respond instantaenously to changes in rules, and one lump-sum payment may be more effective than higher future benefits in encouraging people to defer retirement. A must read!" Alicia H. Munnell, Boston College |"Fresh ideas on an old topic are always welcome, especially when that topic is once again high on the national agenda. By taking a refreshing new look at the retirement decision from the behavioral perspective, this book offers a treasure trove of them. Browse it for fun and profit." Alan Blinder, Princeton University |"With all the talk about saving Social Security, hardly anyone grasps how individuals and families think about retirement beforehand, decide how and when to prepare for it, and experience it when it happens. That is what this fascinating book is about. It is live research still exploratory, offering new questions as well as new answers." Robert M. Solow, Massachusetts Institute of Technology
