Brown Bag Seminar with Dr Irina Merkurieva and Dr Margaret Leighton, University of St Andrews From Childhood Dreams to the Golden Years: a Life-Cycle Approach to Reducing Inequality in Retirement Income

Abstract: This paper examines inequality in retirement outcomes through a life-course perspective, analyzing how early-life experiences, aspirations, education, and career development shape financial security in retirement. Using several UK cohort studies, we develop a structural model that accounts for employment, wages, caregiving, and family dynamics. A key innovation is incorporating childhood aspirations through natural language processing of free-text essays. Our model estimates optimal savings decisions and forecasts future inequality trends, offering insights into critical intervention points. The findings inform policy efforts to promote equity in retirement, addressing disparities that persist despite past pension reforms.