scholarly journals Social Security Wealth, Inequality, and Lifecycle Saving

2020 ◽  
Author(s):  
John Sabelhaus ◽  
Alice H. Volz
Keyword(s):  
Social Security ◽  
Wealth Inequality ◽  
Social Security Wealth

Recent trends in wealth inequality among older Americans in two surveys

2021 ◽  
pp. 1-22
Author(s):  
Gabor Kezdi ◽  
Margaret Lay ◽  
David Weir
Keyword(s):  
Social Security ◽  
Wealth Inequality ◽  
Health And Retirement Study ◽  
Survey Of Consumer Finances ◽  
Older Americans ◽  
Consumer Finances ◽  
Recent Trends ◽  
Social Security Wealth ◽  
Retirement Study

We document changes in wealth inequality across American households with a member aged 55 or older, comparing data in the Health and Retirement Study (HRS) with that in the Survey of Consumer Finances (SCF) between 1998 and 2016. We examine net wealth including housing, financial and nonfinancial assets and debt, without the cash value of insurances, DB pensions or Social Security wealth. We find very similar distributions of net wealth in the two surveys between the 25th and 90th percentiles, but substantially higher wealth in the SCF at the top of the distribution. Both surveys show an increase in wealth inequality between 1998 and 2016, first mostly due to increased wealth at the top, and, after 2012, due to an increase in the share of households with very little wealth as well. Both surveys agree that wealth inequality by education and race, already substantial in 1998, increased further by 2016.

The portfolio effect of pension reforms: evidence from Italy

2010 ◽  
Vol 10 (1) ◽  
pp. 75-97 ◽  
Author(s):  
RENATA BOTTAZZI ◽  
TULLIO JAPPELLI ◽  
MARIO PADULA
Keyword(s):  
Real Estate ◽  
Social Security ◽  
Household Income ◽  
Pension Reforms ◽  
Italian Survey ◽  
Social Security Wealth ◽  
Portfolio Effect ◽  
Pension Benefits ◽  
Social Security Benefits

AbstractWe estimate the portfolio effect of changes in social security wealth exploiting a decade of Italian pension reforms. The Italian Survey of Household Income and Wealth records detailed portfolio data and elicits expectations of retirement outcomes, thus allowing us to measure expected social security wealth and assess to what extent Italian households perceive the innovations brought about by the reforms. We find that households have responded to cuts in pension benefits mostly by increasing real estate wealth, and that this response is stronger among households able more accurately to estimate future social security benefits. We also compute that for the average household consumable wealth increases by 40 percent of the reduction in social security wealth.

scholarly journals Financial Knowledge and Financial Literacy at the Household Level

2012 ◽  
Vol 102 (3) ◽  
pp. 309-313 ◽  
Author(s):  
Alan L Gustman ◽  
Thomas L Steinmeier ◽  
Nahid Tabatabai
Keyword(s):  
Social Security ◽  
Financial Literacy ◽  
Financial Knowledge ◽  
Household Level ◽  
Retirement Saving ◽  
Social Security Wealth ◽  
Intermediate Role

There is evidence of a relation between numeracy and wealth held outside of pensions and Social Security. With pensions and Social Security accounting for half of wealth at retirement, and evidence that those with pensions save more in other forms, one would expect to find knowledge of pensions and Social Security influencing retirement saving. Yet we find no evidence that knowledge of pensions and Social Security is related to nonpension, non-Social Security wealth, to numeracy, or that it plays an intermediate role in the numeracy-wealth relation. Our findings raise questions about policies that would enhance numeracy to increase retirement saving.

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