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Financial vulnerability in later life: Racial and ethnic disparities and debt delinquency among older adults

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  • Zhong, Mingli

Abstract

We examine debt delinquency among U.S. adults aged 50+, using administrative data from 4 million borrowers. In August 2022, about one in five older adults had delinquent debt, signaling financial challenges in retirement. Delinquency rates decreased with age, affecting 25 % of those aged 50–61 and 16 % of those 62+. Racial/ethnic disparities were evident: consumers in majority American Indian/Alaska Native, Black, Hispanic, or Asian American/Pacific Islander areas faced higher probabilities of delinquency and larger median debt amounts compared to majority-white areas across various debt types. These findings highlight disparities in financial security among older adults.

Suggested Citation

  • Zhong, Mingli, 2025. "Financial vulnerability in later life: Racial and ethnic disparities and debt delinquency among older adults," Economics Letters, Elsevier, vol. 252(C).
    • Handle: RePEc:eee:ecolet:v:252:y:2025:i:c:s0165176525002113
    DOI: 10.1016/j.econlet.2025.112374
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    References listed on IDEAS

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    1. John Beshears & James J. Choi & David Laibson & Brigitte C. Madrian & William L. Skimmyhorn, 2022. "Borrowing to Save? The Impact of Automatic Enrollment on Debt," Journal of Finance, American Finance Association, vol. 77(1), pages 403-447, February.
    2. Annamaria Lusardi & Olivia S. Mitchell & Noemi Oggero, 2020. "Understanding Debt in the Older Population," NBER Working Papers 28236, National Bureau of Economic Research, Inc.
    3. Neil Bhutta & Andrew C. Chang & Lisa J. Dettling & Joanne W. Hsu, 2020. "Disparities in Wealth by Race and Ethnicity in the 2019 Survey of Consumer Finances," FEDS Notes 2020-09-28-2, Board of Governors of the Federal Reserve System (U.S.).
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