Cognitive Function, Numeracy and Retirement Saving Trajectories

30 Pages Posted: 24 Jan 2011

See all articles by James W. Banks

James W. Banks

Institute for Fiscal Studies; University of Manchester

Cormac ODea

affiliation not provided to SSRN

Zoé Oldfield

Institute for Fiscal Studies (IFS)

Abstract

This article examines the extent to which cognitive abilities relate to differences in trajectories for key economic outcomes as individuals move towards and through their retirement. We look at whether differences in baseline numeracy (measured in the English Longitudinal Study of Ageing in 2002) and broader cognitive ability predict the subsequent trajectories of outcomes such as wealth, retirement income and key dimensions of retirement expectations. Those with lower numeracy are shown to have different wealth trajectories both pre and post-retirement than their more numerate counterparts, but the distributions of retirement expectations and net replacement rates are similar across numeracy groups.

Suggested Citation

Banks, James W. and ODea, Cormac and Oldfield, Zoe, Cognitive Function, Numeracy and Retirement Saving Trajectories. The Economic Journal, Vol. 120, No. 548, pp. F381-F410, 2010. Available at SSRN: https://ssrn.com/abstract=1746614 or http://dx.doi.org/10.1111/j.1468-0297.2010.02395.x

James W. Banks (Contact Author)

Institute for Fiscal Studies ( email )

7 Ridgmount Street
London, WC1E 7AE
United Kingdom

University of Manchester

Oxford Road
Manchester, M13 9PL
United Kingdom

Cormac ODea

affiliation not provided to SSRN

No Address Available

Zoe Oldfield

Institute for Fiscal Studies (IFS) ( email )

7 Ridgmount Street
London, WC1E 7AE
United Kingdom

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