Reconcilable Differences? Retirement Readiness and the Alignment of Intra-household Preferences

This project will use unique data to investigate how within-couple differences in preferences and in decision-making abilities affect the household finances. More specifically, we study whether misalignment of preferences or abilities influences choices and thus retirement readiness. Many financial decisions, such as saving for retirement, impact the two spouses of a couple. Irrespectively of whether these decisions are made jointly or not, they may reflect their competence in making financial decisions, the risk tolerance of both spouses and their willingness to delay gratification. If the spouses disagree about their risk aversion and their patience, that must affect the financial decisions they make. This project will use a unique dataset that combines administrative bank data with experimental measures of preferences to shed light on how couples make important financial decisions.