This study used the 1998 Survey of Consumer Finances to examine the relationship between consumer debt levels and discretionary retirement savings in IRAs, Keoghs, 401(k)s, 403(b)s, thrift savings and supplemental retirement annuities. Results of a two-stage analysis indicated that installment debt deterred participation in discretionary retirement savings. Among those who had discretionary retirement savings balances, accumulations were significantly lower for those who carried a credit card balance forward and for those who had installment debt. Key words: Debt levels, Discretionary savings, Retirement savings, Credit cards, Individual retirement accounts, Credit, Survey of Consumer Finances

Download Journal

Comments are closed.