Saving behavior in retirement when life horizon is uncertain

Itzhak Zilcha*, Joseph Friedman

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review


We try to explain some recent empirical observations that retired people continue to save in retirement for several years, a behavior which seems to contradict the life-cycle hypothesis. We show that such a behavior is consistent if individuals become more 'optimistic' about their life probability distribution or if individuals become more risk-averse as they age.

Original languageEnglish
Pages (from-to)63-66
Number of pages4
JournalEconomics Letters
Issue number1-2
StatePublished - 1985


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