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Baby Boomer Retirement Security: the Roles of Planning, Financial Literacy, and Housing Wealth

  • Annamaria Lusardi
  • Olivia S. Mitchell

We compare wealth holdings across two cohorts of the Health and Retirement Study: the early Baby Boomers in 2004, and individuals in the same age group in 1992. Levels and patterns of total net worth have changed relatively little over time, though Boomers rely more on housing equity than their predecessors. Most important, planners in both cohorts arrive close to retirement with much higher wealth levels and display higher financial literacy than non-planners. Instrumental variables estimates show that planning behavior can explain the differences in savings and why some people arrive close to retirement with very little or no wealth.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 12585.

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Date of creation: Oct 2006
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Publication status: published as Lusardi, Annamaria & Mitchell, Olivia S., 2007. "Baby Boomer retirement security: The roles of planning, financial literacy, and housing wealth," Journal of Monetary Economics, Elsevier, vol. 54(1), pages 205-224, January.
Handle: RePEc:nbr:nberwo:12585
Note: AG
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