Housing Wealth and Retirement Timing

Farnham, Martin; Sevak, Purvi

doi:10.2139/ssrn.1076751

Cited by 27 publications

(25 citation statements)

References 30 publications

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“…(Imbens, Rubin, and Sacerdote 2001), inheritance receipt (Holtz-Eakin, Joulfaian, and Rosen 1993;Joulfaian and Wilhelm 1994;Brown, Coile, and Weisbenner 2010), housing wealth (Farnham and Sevak 2007), and Social Security "notch" cohorts who saw a large change in Social Security wealth (Krueger and Pischke 1992). Holtz-Eakin, Joulfaian, and Rosen (1993); Imbens, Rubin, and Sacerdote (2001); Brown, Coile, and Weisbenner (2010); and Farnham and Sevak (2007) find evidence of labor supply responses to changes in wealth. By contrast, Krueger and Pischke (1992) and Joulfaian and Wilhelm (1994) find little to no response in labor supply and retirement behavior from changes in wealth.…”

Section: Previous Literaturementioning

confidence: 99%

Does Stock Market Performance Influence Retirement Intentions?

Goda¹,

Shoven²,

Slavov³

2012

Journal of Human Resources

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Media reports predicted that the stock market decline in October 2008 would cause changes in retirement intentions, due to declines in retirement assets. We use panel data from the Health and Retirement Study to investigate the relationship between stock market performance and retirement intentions during 1998-2008, a period that includes the recent crisis. While we find a weak negative correlation between stock returns and retirement intentions, further investigation suggests that this relationship is not driven by wealth shocks brought about by stock market fluctuations, but by other factors that are correlated with both the stock market and retirement intentions.

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Section: Previous Literaturementioning

confidence: 99%

Does Stock Market Performance Influence Retirement Intentions?

Goda¹,

Shoven²,

Slavov³

2012

Journal of Human Resources

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“…Moreover, homeowners having mortgages were less likely to retire (if not yet retired) or more likely to reverse retirement (if already retired). Farnham and Sevak (2016) found that people responded to rising home prices by revising down their expected retirement ages. Specifically, they estimated that a 10% real increase in home value reduced expected retirement ages by about four months.…”

Section: Prior Studiesmentioning

confidence: 99%

Older Women's Labor Market Attachment, Retirement Planning, and Household Debt

Lusardi

Mitchell

2016

SSRN Journal

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The goal of this paper is to ascertain whether older women's current and anticipated future labor force patterns have changed over time, and if so, to evaluate the factors associated with longer work lives and plans to continue work at older ages. Using data from both the Health and Retirement Study (HRS) and the National Financial Capability Study (NFCS), we show that older women's current and intended future labor force attachment patterns are changing over time. Specifically, compared to our 1992 HRS baseline, more recent cohorts of women in their 50's and 60s's are more likely to plan to work longer. When we explore the reasons for delayed retirement among older women, factors include education, more marital disruption, and fewer children than prior cohorts. But household finances also play a key role, in that older women today have more debt than previously and are more financially fragile than in the past. The NFCS data show that factors associated with retirement planning include having more education and greater financial literacy. Those who report excessive amounts of debt and are financially fragile are the least financially literate, had more dependent children, and experienced income shocks. Thus shocks do play a role in older women's debt status, but it is not enough to have resources: people also need the capacity to manage those resources if they are to stay out of debt as they head into retirement. AbstractThe goal of this paper is to ascertain whether older women's current and anticipated future labor force patterns have changed over time, and if so, to evaluate the factors associated with longer work lives and plans to continue work at older ages. Using data from both the Health and Retirement Study (HRS) and the National Financial Capability Study (NFCS), we show that older women's current and intended future labor force attachment patterns are changing over time.Specifically, compared to our 1992 HRS baseline, more recent cohorts of women in their 50's and 60s's are more likely to plan to work longer. When we explore the reasons for delayed retirement among older women, factors include education, more marital disruption, and fewer children than prior cohorts. But household finances also play a key role, in that older women today have more debt than previously and are more financially fragile than in the past. The NFCS data show that factors associated with retirement planning include having more education and greater financial literacy. Those who report excessive amounts of debt and are financially fragile are the least financially literate, had more dependent children, and experienced income shocks. Thus shocks do play a role in older women's debt status, but it is not enough to have resources: people also need the capacity to manage those resources if they are to stay out of debt as they head into retirement.

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“…Previous empirical studies on the effect of house prices, however, find little evidence of wealth effects. For the USA, Farnham and Sevak () find evidence of a housing wealth effect on matched individual–metropolitan‐area house price data, but the impact is highly sensitive to the inclusion or otherwise of state‐level fixed effects. On the other hand, Coile and Levine () and Goda et al .…”

Section: Economic Conditions and Retirementmentioning

confidence: 99%

Booms, Busts and Retirement Timing

2015

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Cyclical fluctuations -which affect both asset and labour markets -can have an ambiguous effect on retirement. We explore this empirically using data from the British Household Panel Survey, exploiting small area geographic identifiers to match local house prices, earnings and unemployment to respondents. We match stock prices via the date of interview. Our results show little evidence of any positive wealth effects despite large spatial and temporal variations in asset prices over the period analysed. We find more response to local labour market conditions -increases in unemployment are associated with earlier retirement while increases in wages delay retirement.

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Housing Wealth and Retirement Timing

Cited by 27 publications

References 30 publications

Does Stock Market Performance Influence Retirement Intentions?

Does Stock Market Performance Influence Retirement Intentions?

Older Women's Labor Market Attachment, Retirement Planning, and Household Debt

Booms, Busts and Retirement Timing

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