We examine household saving in the context of a prescriptive model. Using Survey of Consumer Finances data sets in the 1995–2004 period, 57% of households reported spending less than income. Many effects in the multivariate analysis are consistent with a prescriptive model. We discuss other effects in terms of possible differences in the ability to plan or the accuracy of reporting by the respondent. Young households are more likely to report saving than older households. Black households are less likely to report saving than white households. Single female households are less likely to report saving than single male households.

Determinants of planned retirement age are analyzed. The prediction equation indicates that planned retirement age increases substantially as people get older, and increases somewhat with higher noninvestment income. Social Security reform should recognize that the capacity to continue working and the ability to afford to retire both influence the age at which people plan to retire. The range of planned retirement ages suggests that research on the adequacy of retirement preparation should focus on planned retirement age. Financial planners should consider the finding that planned retirement age increases with age. © 2000 Elsevier Science Inc. All rights reserved.

The purpose of this paper is to examine factors associated with changes in the proportion of households with high financial obligations ratios in the United States. The proportion of households paying more than 40% of income for debt, rent, vehicle leases, property taxes and homeowners’ insurance, which we refer to as having a heavy burden, increased from 18% in 1992 to 27% in 2007. Multivariate analysis of a combination of six Survey of Consumer Finances data sets indicates that the likelihood of having a heavy burden was positively associated with homeownership, self‐employment and retirement status. Those with an optimistic 5‐year expectation of the economy were more likely to be in a household with a heavy burden. Education was positively related to having a heavy burden, suggesting that having a heavy burden is not simply a cognitive error.

This study analyzed the relationship between financial knowledge and household saving behavior using the 2016 Survey of Consumer Finances (SCF) dataset. The results from a hierarchical model showed that both objective knowledge and perceived financial knowledge were positively related to the likelihood of being a saver. The explanatory power of the regression models increased significantly when financial knowledge variables were added. Furthermore, the results were robust across different measurements of household savings and additional analyses using the 2015 National Financial Capability Study (NFCS) dataset. Educators, policymakers, and financial institutions can benefit from these results as they develop programs, policies, and products to motivate and promote saving behavior.

The retirement income replacement ratio is projected using the Federal Reserve's Survey of Consumer Finances. On the basis of lognormal portfolio projections and current portfolio allocation, at least 44 per cent of pre-retired households will not be able to maintain 70 per cent of permanent income standard in retirement. Households planning to retire later and taking a high financial risk in savings and investments have a higher projected replacement ratio. Households having a high proportion of non-housing assets held in equity or bonds have a higher projected replacement ratio than those having a high proportion in cash equivalents.

Retirement adequacy is estimated using a 1995 United States sample of households. Based on mean lognormal portfolio projections and current contribution rates, 52% of households are adequately prepared for retirement. Based on pessimistic projections, only 42% of households are adequately prepared. A regression of the ratio of projected wealth to needs at retirement shows that adequacy increases with stock share (mean projection) and the impact increases with time until retirement. With pessimistic projections, there is no significant relationship between stock share and the adequacy ratio. Planned retirement age and household spending behavior are each significantly related to the adequacy ratio. © 1998 Elsevier Science Inc. All rights reserved.

The objectives of this study were to evaluate the extent to which homeownership contributed to household financial strain as measured by loan delinquency after the onset of the recent housing market crash, and to examine if the impact of homeownership on household financial strain differed for Black and White households. Using data from the 2010 Survey of Consumer Finances, we found that, after controlling for other factors, a household's housing preferences had a potential effect on the likelihood of experiencing financial strain following the collapse of residential housing prices. In addition, Black homeowners were more likely to have experienced financial strain following the housing collapse than were White homeowners, regardless of the time period in which the home was purchased. The implications of the findings for public policy, personal financial planning and education, and further research are presented.

The purpose of this study is to explore the usefulness and limitations of six family financial ratio guidelines developed in the United States in assessing the financial situation of households in South Korea. The ratios examined are debt safety, debt service, solvency, liquidity, savings, and capital accumulation. Guidelines for the first three ratios tend to be enforced by lenders and have similar patterns in both countries, but Korean households are much more likely to meet savings and liquidity guidelines than are U.S. households, and are much less likely to meet the capital accumulation guideline. Multivariate logistic regression analyses show complex patterns of effects of demographic variables on whether Korean households meet each guideline. In four out of six logistic regressions, having a graduate or professional degree has a negative effect on meeting the guideline, raising questions about the appropriateness of the guidelines.