Document Type
Working Paper
Date of this Version
4-13-2021
Abstract
We examine respondents in the Health and Retirement Study (HRS) to observe how their financial situations unfolded as they aged. We focus on low-income older adults and follow them over time to identify the factors associated with having low income at baseline and thereafter. We find that (a) real income remained relatively stable as individuals approached and entered retirement, and progressed through their retirement years, and (b) labor force participation declined and thus earnings became less important with age, while Social Security and retirement savings rose as a proportion of annual income.
Keywords
Financial literacy, financial resilience, aging, vulnerable groups
JEL Code
G53, D14, I38
Working Paper Number
WP2021-08
Copyright/Permission Statement
Any opinions and conclusions expressed herein are solely those of the authors and do not represent the opinions or policy any institutions with which the authors are affiliated. ©2021 Mitchell, Clark, and Lusardi. All rights reserved.
Acknowledgements
This research was performed pursuant to a grant from the Institute of Consumer Money Management; the authors also acknowledge support from the Pension Research Council/Boettner Center at the Wharton School of the University of Pennsylvania. The authors particularly thank Yong Yu for careful and invaluable help with the project. This project is part of the NBER Household Finance and Aging programs.
Date Posted: 22 April 2021