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Financial Well-Being Across Age Cohorts and Its Impact on Retirement Security

The lack of retirement savings in the United States has been well-documented. For example, in 2013 roughly one-third of households near retirement lacked either a defined benefit or defined contribution retirement plan (U.S. Government Accountability Office, 2015), and the median retirement account...

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Autores principales: Skees, Stephanie, Roll, Stephen
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Oxford University Press 2020
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7741642/
http://dx.doi.org/10.1093/geroni/igaa057.366
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author Skees, Stephanie
Roll, Stephen
author_facet Skees, Stephanie
Roll, Stephen
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description The lack of retirement savings in the United States has been well-documented. For example, in 2013 roughly one-third of households near retirement lacked either a defined benefit or defined contribution retirement plan (U.S. Government Accountability Office, 2015), and the median retirement account balance is $0 (Oakley, Brown, & Saad-Lesler, 2018). While this lack of savings is concerning, less clear is the relationship between retirement security and a household’s sense of financial well-being. To that end, this study uses the nationally representative 2017 Survey of Household Economics and Decisionmaking to investigate the relationship between both retirement security indicators and subjective financial well-being—as measured through the Consumer Financial Protection Bureau’s financial well-being scale—across the life course. Specifically, we use multiple regression approaches to compare how financial and knowledge-based indicators of retirement security contribute to the financial well-being of young, mid-career, and pre-retirement cohorts. Preliminary results indicate that feeling “on track” for retirement savings and comfort in making retirement savings decisions were among the strongest contributes to a sense of financial well-being across age cohorts. However, these indicators were particularly important to the financial well-being of older households. Surprisingly, having a 401(k), IRA or pension had no significant impact on savings when controlling for other factors. This study speaks to the importance of both providing effective retirement savings tools, including both educational and financial resources, at multiple points across the life course. It also contributes to a small but growing literature on the intersections between subjective financial well-being and financial decisionmaking.
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spelling pubmed-77416422020-12-21 Financial Well-Being Across Age Cohorts and Its Impact on Retirement Security Skees, Stephanie Roll, Stephen Innov Aging Abstracts The lack of retirement savings in the United States has been well-documented. For example, in 2013 roughly one-third of households near retirement lacked either a defined benefit or defined contribution retirement plan (U.S. Government Accountability Office, 2015), and the median retirement account balance is $0 (Oakley, Brown, & Saad-Lesler, 2018). While this lack of savings is concerning, less clear is the relationship between retirement security and a household’s sense of financial well-being. To that end, this study uses the nationally representative 2017 Survey of Household Economics and Decisionmaking to investigate the relationship between both retirement security indicators and subjective financial well-being—as measured through the Consumer Financial Protection Bureau’s financial well-being scale—across the life course. Specifically, we use multiple regression approaches to compare how financial and knowledge-based indicators of retirement security contribute to the financial well-being of young, mid-career, and pre-retirement cohorts. Preliminary results indicate that feeling “on track” for retirement savings and comfort in making retirement savings decisions were among the strongest contributes to a sense of financial well-being across age cohorts. However, these indicators were particularly important to the financial well-being of older households. Surprisingly, having a 401(k), IRA or pension had no significant impact on savings when controlling for other factors. This study speaks to the importance of both providing effective retirement savings tools, including both educational and financial resources, at multiple points across the life course. It also contributes to a small but growing literature on the intersections between subjective financial well-being and financial decisionmaking. Oxford University Press 2020-12-16 /pmc/articles/PMC7741642/ http://dx.doi.org/10.1093/geroni/igaa057.366 Text en © The Author(s) 2020. Published by Oxford University Press on behalf of The Gerontological Society of America. http://creativecommons.org/licenses/by/4.0/ This is an Open Access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted reuse, distribution, and reproduction in any medium, provided the original work is properly cited.
spellingShingle Abstracts
Skees, Stephanie
Roll, Stephen
Financial Well-Being Across Age Cohorts and Its Impact on Retirement Security
title Financial Well-Being Across Age Cohorts and Its Impact on Retirement Security
title_full Financial Well-Being Across Age Cohorts and Its Impact on Retirement Security
title_fullStr Financial Well-Being Across Age Cohorts and Its Impact on Retirement Security
title_full_unstemmed Financial Well-Being Across Age Cohorts and Its Impact on Retirement Security
title_short Financial Well-Being Across Age Cohorts and Its Impact on Retirement Security
title_sort financial well-being across age cohorts and its impact on retirement security
topic Abstracts
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7741642/
http://dx.doi.org/10.1093/geroni/igaa057.366
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