Debt Close to Retirement and Its Implications for Retirement Well-being

31 Pages Posted: 6 Nov 2019

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; National Bureau of Economic Research (NBER)

Noemi Oggero

University of Turin - Department of Economics, Students

Date Written: October 27, 2019

Abstract

We analyze debt and debt management of Americans nearing retirement age. We show that older people have numerous financial obligations that can lead to financial distress. Using data from the 2015 National Financial Capability Study and an extensive literature review, we show that lack of financial literacy, lack of information, and behavioral biases help explain the prevalence of debt later in life. Our evidence indicates that debt at older ages can negatively influence retirement well-being.

Suggested Citation

Lusardi, Annamaria and Mitchell, Olivia S. and Oggero, Noemi, Debt Close to Retirement and Its Implications for Retirement Well-being (October 27, 2019). CFS Working Paper, No. 631, 2019. Available at SSRN: https://ssrn.com/abstract=3476324 or http://dx.doi.org/10.2139/ssrn.3476324

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

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Noemi Oggero

University of Turin - Department of Economics, Students ( email )

Torino, 10124
Italy

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