Behavioural Explanations and Solutions to the Reluctance of Retirees to Drawdown Wealth

The life-cycle model predicts that people accumulate wealth during their productive careers and draw down their assets after retirement. Yet recent empirical studies for different countries show that many retirees hold on to their assets or even keep on saving well into old age. The focus will be the identification of behavioural explanations for the reluctance to drawdown wealth accumulated during working years and the role of behavioural interventions to encourage people to decumulate their wealth in retirement.