Older Women's Labor Market Attachment, Retirement Planning, and Household Debt

Annamaria Lusardi, Olivia S. Mitchell

Chapter in NBER book Women Working Longer: Increased Employment at Older Ages (2018), Claudia Goldin and Lawrence F. Katz, editors (p. 185 - 215)
Conference held May 21-22, 2016
Published in April 2018 by University of Chicago Press
© 2018 by the National Bureau of Economic Research

Have older women’s current and anticipated future labor force patterns changed over time? If so, what are the factors associated with longer work lives and plans to continue work at older ages? Using data from both the Health and Retirement Study (HRS) and the National Financial Capability Study (NFCS), we show that older women’s current and intended future labor force attachment patterns changed over time. Specifically, compared with our 1992 HRS baseline, more recent cohorts of women in their fifties and sixties are more likely to plan to work longer. When we explore the reasons for delayed retirement among older women, factors include their gaining more education, having more marital disruption, and having had fewer children than prior cohorts. But household finances also play a key role, in that older women today have more debt than previously and are more financially fragile than in the past. The NFCS data show that factors associated with retirement planning include having more education and greater financial literacy. Those who report excessive amounts of debt and are financially fragile are the least financially literate, had more dependent children, and experienced income shocks. Thus shocks do play a role in older women’s debt status. But it is not enough to have resources: people also need the capacity to manage those resources, if they are to stay out of debt as they head into retirement.

download in pdf format
   (657 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Users who downloaded this chapter also downloaded* these:
Lusardi and Mitchell w13750 Planning and Financial Literacy: How Do Women Fare?
Lusardi, Mitchell, and Oggero w23664 Debt and Financial Vulnerability on the Verge of Retirement
Maestas The Return to Work and Women's Employment Decisions
Clark, Lusardi, and Mitchell w21461 Employee Financial Literacy and Retirement Plan Behavior: A Case Study
Lusardi and Mitchell w18952 The Economic Importance of Financial Literacy: Theory and Evidence
NBER Videos

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email:

Contact Us