Optimizing Financial Education Utilization

Title

Debt Close to Retirement and Its Implications for Retirement Well-being

Document Type

Journal Article

Publication Date

11-2019

Keywords

financial status and behavior, general population, financial well-being barriers, life events

Abstract

We analyze debt and debt management of Americans nearing retirement age. We show that older people have numerous financial obligations that can lead to financial distress. Using data from the 2015 National Financial Capability Study and an extensive literature review, we show that lack of financial literacy, lack of information, and behavioral biases help explain the prevalence of debt later in life. Our evidence indicates that debt at older ages can negatively influence retirement well-being.

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