Debt and Financial Vulnerability on the Verge of Retirement

46 Pages Posted: 20 Sep 2017 Last revised: 18 Jan 2018

See all articles by Annamaria Lusardi

Annamaria Lusardi

George Washington University - Department of Accountancy; National Bureau of Economic Research (NBER)

Olivia S. Mitchell

University of Pennsylvania - The Wharton School; University of Pennsylvania - The Wharton School, Pension Research Council; National Bureau of Economic Research (NBER)

Noemi Oggero

University of Turin

Multiple version iconThere are 3 versions of this paper

Date Written: September 11, 2017

Abstract

We analyze older individuals’ debt and financial vulnerability using data from the Health and Retirement Study (HRS) and the National Financial Capability Study (NFCS). Specifically, in the HRS we examine three different cohorts (individuals age 56–61) in 1992, 2004, and 2010 to evaluate cross-cohort changes in debt over time. We also use two waves of the NFCS (2012 and 2015) to gain additional insights into debt management and older individuals’ capacity to shield themselves against shocks. We show that recent cohorts have taken on more debt and face more financial insecurity, mostly due to having purchased more expensive homes with smaller down payments.

Suggested Citation

Lusardi, Annamaria and Mitchell, Olivia S. and Oggero, Noemi, Debt and Financial Vulnerability on the Verge of Retirement (September 11, 2017). CFS Working Paper, No. 574, Available at SSRN: https://ssrn.com/abstract=3038788 or http://dx.doi.org/10.2139/ssrn.3038788

Annamaria Lusardi

George Washington University - Department of Accountancy ( email )

George Washington University School of Business
Washington, DC 20052
United States

HOME PAGE: http://business.gwu.edu/profiles/annamaria-lusardi/

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Olivia S. Mitchell (Contact Author)

University of Pennsylvania - The Wharton School ( email )

Philadelphia, PA 19104-6365
United States

University of Pennsylvania - The Wharton School, Pension Research Council ( email )

3302 Steinberg Hall-Dietrich Hall
3620 Locust Walk
Philadelphia, PA 19104-6302
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Noemi Oggero

University of Turin ( email )

Corso Unione Sovietica 218 bis
Torino, Turin 10134
Italy

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