Housing, Savings and Bequests Over the Life Cycle

In the present context of ageing of population and pension system reforms, this thesis aims at answering several research questions concerning wealth accumulation and saving motives of older individuals. Chapter 2 tackles the question of whether individuals view their housing wealth as a vehicle to save for retirement. Chapter 3 investigates the evolution of housing wealth during retirement, and links that to the bequest motive for saving. Chapter 4 leaves the focus on housing and pays full attention to the question of whether individuals save due to a bequest motive. Chapter 5 sticks to the topic of bequests but shifts the perspective from the donor to the receiver, asking how inheritance receipt affects the economic situation of individuals around the retirement age.

Several findings come out of the studies contained in this thesis. The main finding is that individuals do not generally view housing wealth as an instrument to save for retirement. Careful analysis suggest that is because individuals tend to view their home as an asset to be passed on to their children. Furthermore, this thesis shows that the bequest motive for saving is specially important at the top of the wealth distribution, that rich individuals tend to rely on inter-vivos transfers to avoid paying inheritance taxes, and that receipt of an unexpected inheritance does not have large effects on labour supply decisions of individuals around the retirement age