Housing Wealth Management at Retirement

John Heilbron

MPRA Paper from University Library of Munich, Germany

Abstract: This paper estimates the e ect of retirement on the liquidation of housing assets. I use programmatic Social Security eligibility thresholds to instrument for retirement and find that retirement makes a household 12% more likely to issue any new mortgage debt and 3% more likely to extract equity from a home within the following two years. Retirement-induced housing wealth liquidation increases liquid balances to a greater extent than does ordinary housing wealth liquidation; this evidence is consistent with retirement-induced refinancing being a pro-active planning decision rather than a response to adverse expense shocks. Evidence on specific household motives for liquidating housing wealth is mixed.

Keywords: Household Finance; Household Saving; Intertemporal Household Choice (search for similar items in EconPapers)
JEL-codes: D12 D14 (search for similar items in EconPapers)
Date: 2019-10-30
References: Add references at CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/125715/1/MPRA_paper_125715.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:125715

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().