RetireSecure Blog

March 10, 2014

Mortgage Debt and Retirement across Generations

Filed under: New Research,Planning for Retirement,Retirement Research,Uncategorized — The Pension Research Council @ 12:55 pm

Economists Annamaria Lusardi of George Washington University and Olivia S. Mitchell of the Wharton School of the University of Pennsylvania are evaluating changes in older Americans’ debt patterns across the generations.

When comparing Americans looking to retire in 1992 (those born during the Depression) and those of the same age in 2008 (Baby-Boomers), they find stark contrasts. Earlier cohorts had outstanding housing debt of around $40,000, while Baby Boomers owed close to $66,000 (both in $2008).  The authors note that the housing bubble accounts for a large part of the difference. Boomers bought more expensive houses with smaller down payments, and close to a fifth of them were underwater on their mortgages as a result.

Read the full Market Watch story here at the Wall Street Journal



Leave a Comment »

No comments yet.

RSS feed for comments on this post. TrackBack URI

Leave a Reply

Please log in using one of these methods to post your comment: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

Blog at

%d bloggers like this: