Accumulating and spending down wealth is the basic way individuals transfer resources between time periods and smooth their living standards over their lifetimes. IFS research in this area examines the ‘adequacy’ of the resources individuals have and are accumulating for retirement, both in absolute terms and when considered relative to lifetime earnings. It considers the many drivers of saving (including income smoothing, precautionary saving, bequest motives and the role of housing) and the factors that might affect individuals choices (including uncertain life expectancies, tax incentives on different savings forms, and the role of inheritance tax). IFS research is also concerned with how wealth is drawn down in retirement, in particular in light of the removal of the requirement to annuitise accumulated defined contribution pension wealth in the UK.
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