In contrast to previous efforts to measure preparedness for retirement, we disentangle the roles of variation in needs and accumulated resources by comparing annuitized wealth from administrative data with self-reports of minimal and preferred expenditures during retirement. In order to draw conclusions that are representative for the Dutch population we estimate a multivariate sample selection model and simulate pension annuities and consumption needs. The model takes into account that some people thought more about retirement than others and that some people found it more difficult than others to answer questions about retirement needs. We find that in the aggregate the Dutch can expect to retire quite comfortably, exceeding their expenditure floors and according their preferred level of spending. However, both needs and resources vary widely across the sample and about a fifth cannot afford their minimal expenditures even if they would draw down housing wealth.
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