Do households save more when the kids leave? Take two

Biggs, Andrew G., Anqi Chen, and Alicia Haydock Munnell. “Do households save more when the kids leave? Take two”. Issue in Brief 22-5, Chestnut Hill, Mass.: Center for Retirement Research at Boston College, March 2022. http://hdl.handle.net/2345/bc-ir:109371.
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Abstract

The brief's key findings are: (1) When kids leave home, parents consume less but they don't save more. So where is the money going? (2) The analysis looks at three ways to square the circle: define saving more broadly: parents could be paying down debt faster; define consumption more broadly: they could be assisting grown children; and define income more precisely: they could be earning less than before. (3) The results support the third explanation: when kids leave, parents work and earn less. (4) But the results also show that consumption still declines relative to income without any rise in net worth, so this study does not fully resolve the puzzle.

Title
Do households save more when the kids leave? Take two
Author
Biggs, Andrew G.
Chen, Anqi
Munnell, Alicia Haydock
School
Carroll School of Management
Discipline
Finance
Center
Center for Retirement Research
Genre
report
Date Issued
March 2022
Publisher
Center for Retirement Research at Boston College
Series Title
Issue in Brief
Series Number
22-5
Persistent Link
http://hdl.handle.net/2345/bc-ir:109371
Use Restrictions
These materials are made available for use in research, teaching and private study, pursuant to U.S. Copyright Law. The user must assume full responsibility for any use of the materials, including but not limited to, infringement of copyright and publication rights of reproduced materials. Any materials used for academic research or otherwise should be fully credited with the source. The publisher or original authors may retain copyright to the materials.
Subject
Financing Retirement

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