Net worth and housing equity in retirement
By: Todd Sinai, Nicholas S. Souleles.
Contributors: Souleles, Nicholas S.; National Bureau of Economic Research.
Series: NBER working paper series -- working paper 13693; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 13693.
Publisher: National Bureau of Economic Research
Published: 2007
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "This paper documents the trends in the life-cycle profiles of net worth and housing equity between 1983 and 2004.  The net worth of older households significantly increased during the housing boom of recent years.  However, net worth grew by more than housing equity, in part because other assets also appreciated at the same time.  Moreover, the younger elderly offset rising house prices by increasing their housing debt, and used some of the proceeds to invest in other assets.  We also consider how much of their housing equity older households can actually tap, using reverse mortgages.  This fraction is lower at younger ages, such that young retirees can consume less than half of their housing equity.  These results imply that 'consumable' net worth is smaller than standard calculations of net worth"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 6/6/2008.

Includes bibliographical references.

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