Life-Cycle Finance and the Design of Pension Plans

Posted: 4 Jun 2010

See all articles by Zvi Bodie

Zvi Bodie

Boston University

Jerome Detemple

Boston University - Questrom School of Business

Date Written: December 2009

Abstract

This article reviews recent scientific literature on consumer financial decisions over the life cycle, outlining its implications for the design of pension plans. It begins with a review of advances in the theory of rational financial planning and wealth management. It then summarizes the recent empirical literature on the actual behavior of households regarding saving, investing, and insuring their consumption in old age. Finally, it briefly comments on the practical implications of the theory for the design of pension systems and outlines areas of future research.

Suggested Citation

Bodie, Zvi and Detemple, Jerome, Life-Cycle Finance and the Design of Pension Plans (December 2009). Available at SSRN: https://ssrn.com/abstract=1599378 or http://dx.doi.org/10.1146/annurev.financial.050708.144317

Zvi Bodie (Contact Author)

Boston University ( email )

12 Salisbury Road
Brookline, MA
United States
617 306 5556 (Phone)

HOME PAGE: http://www.zvibodie.com

Jerome Detemple

Boston University - Questrom School of Business ( email )

595 Commonwealth Avenue
Boston, MA MA 02215
United States

Do you have negative results from your research you’d like to share?

Paper statistics

Abstract Views
864
PlumX Metrics