Early Baby Boomers Research Articles

How much do respondents in the health and retirement study know about their contributions to tax-deferred contribution plans? A cross-cohort comparison

AbstractWe use information from Social Security earnings records to examine the accuracy of survey responses regarding participation in tax-deferred pension plans. As employer-provided defined benefit pensions are replaced by voluntary contribution plans, employees’ understanding of the link between their annual contributions and their post-retirement wealth is becoming increasingly important. We examine the extent to which wage-earners in the Health and Retirement Study (HRS) correctly report their inclusion in tax-deferred contribution plans and, conditional on inclusion, their annual contributions. We use three samples representing different cohorts in three different periods: the original HRS cohort interviewed in 1992 at ages 51–56, the War Babies cohort interviewed in 1998 at ages 51–56, and the Early Baby Boomer cohort interviewed in 2004 at the same ages. Our findings indicate that while respondents interviewed in 1998 and 2004 were more likely to correctly report whether they were included in defined contribution plans, they were no more accurate when reporting whether they had contributed to their plans than respondents interviewed in 1992. Contributors in the three cohorts, moreover, overstated their annual contributions and thus would be likely to realize lower than expected account balances at retirement. The magnitude of this error is not negligible. In all three cohorts, the mean reporting error (the absolute difference between respondent-reported and Social Security earnings record contributions) was approximately 1.5 times larger than the mean contribution in the W-2 earnings record.

Cohort differences in the marriage–health relationship for midlife women

The present study aimed to identify potential cohort differences in midlife women's self-reported functional limitations and chronic diseases. Additionally, we examined the relationship between marital status and health, comparing the health of divorced, widowed, and never married women with married women, and how this relationship differs by cohort.Using data from the Health and Retirement Study (HRS), we examined potential differences in the level of functional limitations and six chronic diseases in two age-matched cohorts of midlife women in the United States: Pre-Baby Boomers, born 1933–1942, N = 4574; and Early Baby Boomers, born 1947–1956, N = 2098. Linear and logistic regressions tested the marital status/health relationship, as well as cohort differences in this relationship, controlling for age, education, race, number of marriages, length of time in marital status, physical activity, and smoking status.We found that Early Baby Boom women had fewer functional limitations but higher risk of chronic disease diagnosis compared to Pre-Baby Boom women. In both cohorts, marriage was associated with lower disease risk and fewer functional limitations; however, never-married Early Baby Boom women had more functional limitations, as well as greater likelihood of lung disease than their Pre-Baby Boom counterparts (OR = 0.28).Results are discussed in terms of the stress model of marriage, and the association between historical context and cohort health (e.g., the influence of economic hardship vs. economic prosperity). Additionally, we discuss cohort differences in selection into marital status, particularly as they pertain to never-married women, and the relative impact of marital dissolution on physical health for the two cohorts of women.

Determinants of Retirement Timing Expectations in the United States and Australia: A Cross-National Comparison of the Effects of Health and Retirement Benefit Policies on Retirement Timing Decisions

Data from the U.S. Health and Retirement Study (N = 2,589) and the Australian Household Income and Labour Dynamics survey (N = 1,760) were used to compare the macro-level policy frameworks on individual retirement timing expectations for pre–baby boomers (61+ years) and early baby boomers (45 to 60 years). Australian workers reported younger expected age of retirement compared to the U.S. sample. Reporting poor health was more strongly associated with younger expected retirement age in the United States than in Australia. Cohort and gender differences in the United States were found for the effect of private health insurance on younger expected age at retirement. Our results draw attention to how cross-national comparisons can inform us on the effects of policies on retirement expectations among older workers.

Perceptions and Barriers of Four Female Agricultural Educators Across Generations: A Qualitative Study

The purpose of this descriptive study was to discover the perceptions and barriers of four female agriculture educators across generations in a non–traditional field of agriculture. The United States Department of Labor (2006b) defined a non–traditional job as any occupation where one gender comprises 25% or less of the total employment. Four female agriculture teachers across three generations were interviewed with the open–ended question: “What have been your personal and professional experiences in teaching agricultural education?” The teachers selected were from three generations: early Baby Boomer (Vietnam Generation), late Baby Boomer (Me Generation), Generation Xer, and Millennial. The themes revealed in the study were: qualifications to teach agricultural education, challenges in teaching agricultural education, stress in teaching agricultural education, and stereotyping of agricultural education teachers. Females teaching high school agricultural education expressed they needed to prove they were qualified; prove women can perform agricultural education duties; overcome resentment from students; balance family and work; and break the stereotype of a high school agricultural education teacher.

How Much Do Respondents in the Health and Retirement Study Know About Their Tax-Deferred Contribution Plans? A Cross-Cohort Comparison

We use information from Social Security earnings records to examine the accuracy of survey responses regarding participation in tax-deferred pension plans. As employer-provided defined benefit pensions are replaced by voluntary contribution plans, employees’ understanding of the link between their annual contribution decisions and their post-retirement wealth is becoming increasingly important. We examine the extent to which wage-earners in the Health and Retirement Study correctly report their inclusion in tax-deferred contribution plans and, conditional on inclusion, their annual contributions. We use two samples representing different cohorts in two different periods: the original HRS cohort interviewed in 1992 at ages 51-61, and a combination of the War Babies and Early Baby Boomer cohorts at the same ages interviewed twelve years later. Our findings indicate that while respondents interviewed in 2004 were more likely to report correctly whether they were included in DC plans, they were no more accurate in reporting whether they contributed to their plans than respondents interviewed in 1992. Respondents in both cohorts, moreover, overestimated their annual contributions. In both 1992 and in 2004, the mean absolute difference between respondent-reported and Social Security earnings record contributions was 1.5 times larger than the mean earnings record contribution.

Forecasting Labor Force Participation and Economic Resources of the Early Baby Boomers

This paper forecasts the retirement patterns and resources of the Early Baby Boomers by estimating forward-looking dynamic models of labor force participation, wealth accumulation and pension and Social Security benefit claiming for older workers using seven waves of HRS-data. The two most important innovations of our proposed approach are the use of alternative measures of pension entitlements and the associated incentives, and accounting for subjective expectations about future work. Our main findings are that the Early Baby Boomers will work longer and claim Social Security later.

Are 401(K) Saving Rates Changing? Cohort/Period Evidence from the Health and Retirement Study

This research examines the determinants of eligibility and participation in 401(k) plans using two cross-sections of data from the Health and Retirement Study. Our sample consists of workers ages 51-56 representing two cohorts: the original HRS cohort born 1931-41, first interviewed in 1992, and the Early Baby Boomer (EBB) cohort born 1948-53, interviewed in 2004. Participation in 401(k) pensions in the EBB cohort is nearly 50 percent greater than that of the earlier cohort. This substantial growth in 401(k) plan participation over a relatively brief period may reflect intrinsic differences in tastes between the two cohorts, changes over this period in the external environment regarding retirement saving, or the joint effects of both influences.

Baby Boomer retirement security: The roles of planning, financial literacy, and housing wealth

We compare wealth holdings across two cohorts of the Health and Retirement Study: the early Baby Boomers in 2004, and individuals in the same age group in 1992. Levels and patterns of total net worth have changed relatively little over time, though Boomers rely more on housing equity than their predecessors. Most important, planners in both cohorts arrive close to retirement with much higher wealth levels and display higher financial literacy than non-planners. Instrumental variables estimates show that planning behavior can explain the differences in savings and why some people arrive close to retirement with very little or no wealth.

Baby Boomer Retirement Security: The Roles of Planning, Financial Literacy, and Housing Wealth

Recent research on wealth and household finances seeks to blend neoclassical models with an understanding of real-world imperfections to answer questions about why some people save and others do not. This paper focuses on Baby Boomers standing on the verge of retirement, many of whom have saved little and will face financial insecurity in old age. The new 2004 wave of the Health and Retirement Study is invaluable for this first analysis of the financial situation of leading-edge Boomers, as it reports not only wealth levels but also information about respondents' planning behaviors and economic literacy. We show that the distribution of net worth among Early Baby Boomers is quite skewed; those in the 75th percentile had over 10 times the net worth ($400K) of households in the bottom 25th percentile ($37K). There is substantial heterogeneity in wealth within this cohort: the median high-school dropout had less than $23K in total net worth, while the median college graduate had over 10 times as much. Many Black and Hispanic Boomer households hold miniscule levels of wealth. Further, many in this cohort have accumulated little wealth outside their homes: at the mean, one third of the early Boomers' wealth is held in the form of home equity, and at the median the fraction is close to half. Since many members of this EBB cohort are reaching retirement with a substantial portion of its wealth in housing, they are particularly vulnerable to housing value shocks. By contrast, holders of stocks, IRAs, and business equity are concentrated in the top quartiles. Finally, we show that planning and economic literacy are important predictors of savings and investment success.

Personal goals at age 25 in three generations of the twentieth century: Young adulthood in historical context 1This research was supported by the Swiss National Science Foundation within the Swiss Priority Program “Switzerland: Towards the Future” (Project no. 5004-47766). We would like to thank two anonymous reviewers for their comments on an earlier version of this manuscript and Christian Staerklé

The possibility of a historically determined shift in developmental tasks of young adulthood was investigated. Personal goals at age 25 of participants from three cohorts spanning twentieth-century Swiss history were studied in an interview combining current and retrospective measures. Members of the oldest cohort (Between the Wars) were born beween 1920 and 1925. Members of the middle cohort (Early Baby Boomers) were born between 1945 and 1950. Members of the youngest cohort (Generation X) were born between 1970 and 1975. Results show significant shifts in goal content which reflect well-documented historical changes. For example, BTW participants mainly mention work- and family-related goals (corresponding to classical developmental tasks). However, GEX participants mention more goals related to education and leisure, and less family-related goals than earlier generations. This suggests that classical formulations of developmental tasks of young adulthood (e.g. starting work, founding a family) may be less adequate today.

Retirement Housing and Locational Preferences of The Depression and Early Baby Boom Age Cohorts

The purpose of this study was to compare the housing and locational preferences and plans for the first 10 years of retirement of two cohorts within the maturing population: the early baby boomers (born 1946–1954) and the Depression cohort (born 1930–1939). The data were collected as part of a telephone survey of Oregon and Utah residents. Chi-square analyses were used to determine whether there are significant differences between the two cohorts (N = 836). Early baby boom cohort respondents were found to be significantly different (p < .01 ) from Depression cohort respondents in terms of propensity to move: only 51% of early baby boomers plan to remain in current housing compared to 67% of Depression cohort respondents.