ABSTRACT
This chapter reviews the literature on economic preferences especially risk and patience and ageing. An emerging focus of researchers and policymakers, population ageing will invariably touch every facet of economics, healthcare, politics, and social security. Acknowledging that the potential consequences of a complete shift away from pay-as-you-go pensions are unclear, the authors suggest that the economic efficiency of these schemes requires further study before population ageing's full impact on pension reform design can be assessed. The study produced a nationally representative sample of adults aged 51-61 and, crucially, linked the survey with administrative data from Social Security and Medicare programs. The authors examine the time allocation of the aged, exploring how much of a person's life is devoted to work (paid and unpaid), leisure, and personal care (attending to biological needs like eating, sleeping, and medical care). The chapter also presents an overview on the key concepts discussed in this book.
