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Remaking Retirement: Debt in an Aging Economy

Online ISBN:
9780191904295
Print ISBN:
9780198867524
Publisher:
Oxford University Press
Book

Remaking Retirement: Debt in an Aging Economy

Olivia Mitchell (ed.),
Olivia Mitchell
(ed.)
International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania
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Annamaria Lusardi (ed.)
Annamaria Lusardi
(ed.)
Endowed Chair of Economics and Accountancy, George Washington University School of Business
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Published online:
19 November 2020
Published in print:
2 November 2020
Online ISBN:
9780191904295
Print ISBN:
9780198867524
Publisher:
Oxford University Press

Abstract

Around the world, people nearing and entering retirement are holding ever-greater levels of debt than in the past. This is not a benign situation, as many pre-retirees and retirees are stressed about their indebtedness. Moreover, this growth in debt among the older population may render retirees vulnerable to financial shocks, medical care bills, and changes in interest rates. Contributors to this volume explore key aspects of the rise in debt across older cohorts, drill down into the types of debt and reasons for debt incurred by the older population, and review policies to remedy some of the financial problems facing older persons, in the United States and elsewhere. The authors explore which groups are most affected by debt, and they also identify the factors causing this important increase in leverage at older ages. It is clear that the economic and market environments are influential when it comes to saving and debt. Access to easy borrowing, low interest rates, and the rising cost of education have had important impacts on how much people borrow, and how much debt they carry at older ages. In this environment, the capacity to manage debt is ever more important as older workers lack the opportunity to recover for mistakes.

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