Citation

Discussion Paper Details

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Title: Comparing Retirement Wealth Trajectories on Both Sides of the Pond

Author(s): Richard Blundell, Rowena Crawford, Eric Baird French and Gemma Tetlow

Publication Date: April 2016

Keyword(s): Savings

Programme Area(s): Public Economics

Abstract: We use comparable data from the US and England to examine similarities and differences in the level and trajectories of assets among households aged 70 and over. We find that in the US assets on average decline gradually with age, while in England older households actually accumulate wealth. These differences appear to be driven largely, though not entirely, by housing wealth: over the period we consider house price growth drove increases in housing wealth in England that more than offset the slow draw down of non-housing wealth. This suggests the illiquid nature of housing is likely to be an important factor in explaining wealth drawdown at older ages. We also consider the potential importance of bequest motives and savings to insure against the risk of medical and long-term care expenses.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=11219

Bibliographic Reference

Blundell, R, Crawford, R, French, E and Tetlow, G. 2016. 'Comparing Retirement Wealth Trajectories on Both Sides of the Pond'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=11219