Scott, Jason; Shoven, John B.; Slavov, Sita; Watson, John G. - 2022
We examine optimal retirement saving for young adults in a life cycle model. We find that for liquidity …-constrained young adults who anticipate significant earnings growth, optimal retirement saving is zero. Specifically, we find that with … a plausible wage profile for college-educated workers, retirement saving does not begin until the late 30s or early 40s …