Asset Cycles and the Retirement Decisions of Older Workers

Boston College Center for Retirement Research Working Paper No. 2010-13

61 Pages Posted: 10 Nov 2010

See all articles by Jan Ondrich

Jan Ondrich

Syracuse University - Center for Policy Research

Date Written: October 20, 2010

Abstract

To determine how asset values of older workers affect their future retirement decisions, it is important to take into account how asset values change over asset cycles. This study uses HRS data from waves 1992 through 2008 together with restricted SSA data on geographic location to estimate a model of the age at first self-reported retirement for the subsample of married males. The model covariates include demographic variables, workplace variables, non-housing financial wealth, housing equity and size of mortgage. The proportional hazard estimates are, for the most part, significant and of the correct sign. The estimated models replicate the decisions of the sample members for the period from 2000 to 2007. The models do not replicate the sharp drop in the aggregate retirement rate in the year 2008, the final year of the sample, which is also the first sample year in which non-housing financial wealth and housing equity both declined throughout the United States.

Keywords: Retirement, Older Workers, Asset Values, Mortgage

Suggested Citation

Ondrich, Jan, Asset Cycles and the Retirement Decisions of Older Workers (October 20, 2010). Boston College Center for Retirement Research Working Paper No. 2010-13. Available at SSRN: https://ssrn.com/abstract=1695157 or http://dx.doi.org/10.2139/ssrn.1695157

Jan Ondrich (Contact Author)

Syracuse University - Center for Policy Research ( email )

Maxwell School of Citizenship 426 Eggers Hall
Syracuse, NY 13244
United States

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