Debt and Financial Vulnerability on the Verge of Retirement
We analyze older individuals’ debt and financial vulnerability using data from the Health and Retirement Study (HRS) and the National Financial Capability Study (NFCS). Specifically, in the HRS we examine three different cohorts (individuals age 56–61) in 1992, 2004, and 2010 to evaluate cross-cohort changes in debt over time. We also use two waves of the NFCS (2012 and 2015) to gain additional insights into debt management and older individuals’ capacity to shield themselves against shocks. We show that recent cohorts have taken on more debt and face more financial insecurity, mostly due to having purchased more expensive homes with smaller down payments.
Non-Technical Summaries
- For Americans aged 56–61, median indebtedness rose sharply from 1992 to 2004. For the top quartile, debt doubled between 1992 and...
Published Versions
ANNAMARIA LUSARDI & OLIVIA S. MITCHELL & NOEMI OGGERO, 2020. "Debt and Financial Vulnerability on the Verge of Retirement," Journal of Money, Credit and Banking, vol 52(5), pages 1005-1034. citation courtesy of 
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