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E2b Mental Accounting, Estate Bequests, and Retirement Satisfaction
Key Words
Health and Retirement Study, Bequest, Mental Accounting, Fixed Effects, Retirement
Short Description
Research was conducted to examine the relationship between mentally accounting for a bequest and retirement satisfaction using the Health and Retirement Study (HRS). Although traditional life-cycle consumption models assume spending down assets at the end of life, this study uses a fixed-effects logit model to identify a significant positive relationship between a retiree mentally accounting for a bequest and the retiree's retirement satisfaction.