Household Income, Asset Allocation, and the Retirement Decision

Authors

  • Karen Eilers Lahey College of Business Administration, University of Akron
  • Doseong Kim College of Business Administration, University of Akron
  • Melinda L. Newman College of Business Administration, University of Akron

DOI:

https://doi.org/10.61190/fsr.v12i3.4766

Keywords:

Retirement, Asset allocation, Wealth, Income, Probit

Abstract

We examine the financial condition of households as they move into retirement and the relative influence of wealth and income on the deision to retire. We find no significant difference between the net worth of retired and nonretired households, suggesting that retirees are no more adequitely prepared than the nonretired subsample. With respect to portfolio allocation, retired households have significantly more financial assets, with a concentration in fixed-income secuirities, but home equity accounts for nearly half of their net worth. In addition, other household members employment earnings generate approximitely 40% of income for retired households. 

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Published

2003-09-30

Issue

Vol. 12 No. 3 (2003): FSR Fall 2003

Section

New Original Submission

License

Copyright (c) 2003 Academy of Financial Services

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How to Cite

Household Income, Asset Allocation, and the Retirement Decision. (2003). Financial Services Review, 12(3), 219-238. https://doi.org/10.61190/fsr.v12i3.4766