Wharton Pension Research Council Working Papers
 

Document Type

Working Paper

Date of this Version

5-6-2020

Abstract

We analyze debt and debt management of Americans nearing retirement age, to document that older people have numerous financial obligations that can lead to financial distress. Using data from the 2015 National Financial Capability Study and drawing on an extensive literature review, we show that lack of financial literacy, lack of information, and behavioral biases help explain the prevalence of debt later in life. Our evidence indicates that debt at older ages can negatively influence retirement well-being.

Keywords

Older adults, debt, National Financial Capability Study, financial understanding

Working Paper Number

WP2019-08

Disclosure

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

Copyright/Permission Statement

The content is solely the responsibility of the authors and does not necessarily represent official views of the TIAA Institute or the Wharton School’s Pension Research Council/Boettner Center. ©2020 Lusardi, Mitchell, and Oggero. All rights reserved.

Acknowledgements

This project received funding from the TIAA Institute and the Wharton School’s Pension Research Council/Boettner Center. The authors thank Paul Yakoboski for many helpful comments but they remain responsible for any errors or omissions.

Included in

Economics Commons

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Date Posted: 20 September 2019