Wharton Pension Research Council Working Papers
 

Document Type

Working Paper

Date of this Version

10-24-2018

Abstract

We use data from the 2015 National Financial Capability Study to analyze debt close to retirement. We show people carry many types of debt late in their lifetimes, and these types of debt are differently linked to measures of financial distress such as having too much debt or being unable to face a financial shock. Accordingly, it is important to be able to disaggregate debt to investigate reasons why individuals carry debt close to retirement. We show that lack of financial literacy, lack of information, and behavioral biases all help explain the prevalence of debt later in life. Our evidence indicates that debt at older ages can may negatively influence retirement wellbeing.

Comments

This project received funding from the TIAA Institute and Wharton School’s Pension Research Council/Boettner Center.

Working Paper Number

WP 2018-11

Copyright/Permission Statement

The content is solely the responsibility of the authors and does not necessarily represent official views of the TIAA Institute or Wharton School’s Pension Research Council/Boettner Center. ©2018 Lusardi, Mitchell, and Oggero. All rights reserved.

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Economics Commons

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Date Posted: 06 February 2019