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Baby boomer retirement security: The roles of planning, financial literacy, and Housing wealth

  • Lusardi, Annamaria
  • Mitchell, Olivia S.

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 Center for Financial Studies (CFS) in its series CFS Working Paper Series with number 2006/20.

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Date of creation: 2006
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Handle: RePEc:zbw:cfswop:200620
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  12. Giovanni Mastrobuoni, 2007. "Do better–informed workers make better retirement choices? A test based on the Social Security Statement," Carlo Alberto Notebooks 51, Collegio Carlo Alberto.
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  20. Hurst, Erik & Kennickell, Arthur & Lusardi, Annamaria & Torralba, Francisco, 2006. "Precautionary savings and the importance of business owners," CFS Working Paper Series 2006/16, Center for Financial Studies (CFS).
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  24. Olivia S. Mitchell & James Moore & John Phillips, . "Explaining Retirement Saving Shortfalls," Pension Research Council Working Papers 98-13, Wharton School Pension Research Council, University of Pennsylvania.
  25. John Ameriks & Andrew Caplin & John Leahy, 2002. "Wealth Accumulation and the Propensity to Plan," NBER Working Papers 8920, National Bureau of Economic Research, Inc.
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