Financial Well-Being of State and Local Government Retirees in North Carolina

Wharton Pension Research Council Working Paper No. 2019-16

Published in Mitchell, O., and A. Lusardi (Eds.) (2020). Remaking Retirement: Debt in an Aging Economy. Oxford, UK: Oxford University Press.

Posted: 20 Feb 2020 Last revised: 30 Nov 2020

See all articles by Robert L. Clark

Robert L. Clark

North Carolina State University - Poole College of Management

Siyan Liu

North Carolina State University

Date Written: May 2, 2019

Abstract

Low and moderate income retirees face considerable changes as they try to maintain their standard of living. Managing their assets and debts are important to the well-being of these households. We analyze how recent low and moderate income retirees utilize retirement savings and provide evidence on their financial fragility using survey data on public employees in North Carolina who retired between 2009 and 2014. Many of these public retirees cannot come up with emergency cash. A quarter of our sample maintain high-interest debt while leaving low-return funds in retirement saving plans. We show that suboptimal debt holding is associated with lower household income and lower financial literacy.

Keywords: older adults, low income retirees, moderate income retirees, retirement savings, public employees, North Carolina, financial literacy

Suggested Citation

Clark, Robert L. and Liu, Siyan, Financial Well-Being of State and Local Government Retirees in North Carolina (May 2, 2019). Wharton Pension Research Council Working Paper No. 2019-16, Published in Mitchell, O., and A. Lusardi (Eds.) (2020). Remaking Retirement: Debt in an Aging Economy. Oxford, UK: Oxford University Press., Available at SSRN: https://ssrn.com/abstract=3540379 or http://dx.doi.org/10.2139/ssrn.3540379

Robert L. Clark (Contact Author)

North Carolina State University - Poole College of Management ( email )

Hillsborough Street
Raleigh, NC 27695-8614
United States
919-515-5560 (Phone)
919-515-5564 (Fax)

Siyan Liu

North Carolina State University

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