Journal of money credit and banking · 2019 · 133 citations · 37 references
Public AffairsDemographyFinanceAgingGeriatricsGerontologyDebt DynamicsDebt ManagementDebt ModelingFinancial RiskInterest Rate RiskPopulation AgingLate RetirementRetirementVulnerabilityVulnerability In Later Life
The study examines older adults’ debt levels and financial vulnerability using Health and Retirement Study and National Financial Capability Study data. The authors compare debt across three age‑56‑61 cohorts from 1992, 2004, and 2010 in the HRS and supplement with NFCS 2012 and 2015 waves to assess debt management and shock resilience. Recent cohorts carry higher debt and greater financial insecurity, making them especially vulnerable to projected interest‑rate hikes.
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). In the HRS, we compare three groups of people age 56–61 in 1992, 2004, and 2010, to assess cross‐cohort changes in debt over time. Two waves of the NFCS (2012 and 2015) provide additional insights into debt management and older individuals’ capacity to shield themselves against shocks. We conclude that recent cohorts hold more debt and face more financial insecurity than in the past. This will render them particularly vulnerable to forecasted interest rate increases.
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Planning and Financial Literacy: How Do Women Fare?
Annamaria Lusardi, Olivia S. Mitchell · American Economic Review · 2008 · 1.5K citations