Consumption, Saving, and Wealth Accumulation At Old Age: Comparing Evidence From Developed and Developing Countries 1

In this chapter, we briefly review the literature about consumption, saving, and wealth accumulation decisions in developed and developing countries. Given the rapid ageing of the population worldwide and the health and longevity risks older households face, we focus on the behavior of older individuals and document wealth decumulation patterns in different cultural and economic contexts. We first discuss why the study of consumption and saving decisions in developed and developing countries may require different conceptual frameworks and empirical approaches. We then provide an overview of observed consumption and saving patterns at old age, highlighting key factors that might influence the shape of the age-wealth profile in different contexts. Finally, we hint at future research avenues opened by newly available microdata on consumption, saving, and wealth in developing countries.