Lifecycle Asset Accumulation and Allocation in Canada Kevin Milligan ~ Vancouver School of Economics ~ University of British Columbia

Lifecycle Asset Accumulation and Allocation in Canada

Canadian Journal of Economics, Vol. 38, No. 3 (August, 2005), pp. 1057-1106.
Google Scholar entry.

This paper documents the life-cycle patterns of household portfolios in Canada, and investigates several hypotheses about asset accumulation and allocation. Comparisons are made to previous surveys to assess the case for an age versus cohort interpretation of the cross-sectional patterns. Evidence for wealth decumulation at older ages strengthens when annuitized assets such as pension wealth are included in the analysis. I also find that the portfolio share of financial assets increases sharply with age, while indicators of risk tolerance appear to decrease. This is consistent with families desiring more liquid and less risky assets as they age.


Published version, August, 2005: DOI.

Updated draft, November, 2004: PDF.

NBER Working Paper No. 10860, October, 2004: Abstract/Paper.

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