The Changing Face of Debt and Financial Fragility at Older Ages

TitleThe Changing Face of Debt and Financial Fragility at Older Ages
Publication TypeJournal Article
Year of Publication2018
AuthorsLusardi, A, Mitchell, OS, Oggero, N
JournalAEA Papers and Proceedings
Volume108
Start Page407
Pagination4077-411
Date Published05/2018
ISSN Number2574-0768
KeywordsDebt, Finances, Financial security, Homeownership, Retirement Planning and Satisfaction
Abstract

We investigate changes in older individuals' financial fragility as they stand on the verge of retirement. Using data from the Health and Retirement Study (HRS), we compare how debt has changed for successive cohorts of people age 56-61. Our analysis shows that recent older Americans close to retirement hold more debt, and hence face greater financial insecurity, than earlier generations. This is primarily due to having bought more expensive homes with smaller down payments. We discuss possible policy implications.
Citation Key9600