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Baby Boomers' Financial Status and the Effects of Housing Equity on Retirement Preparation
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베이비부머의 재정현황과 주택자산이 은퇴준비 정도에 미치는 영향

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Type
Academic journal
Author
Journal
한국소비문화학회 소비문화연구 소비문화연구 제15권 제1호 KCI Accredited Journals
Published
2012.1
Pages
141 - 160 (20page)

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Baby Boomers' Financial Status and the Effects of Housing Equity on Retirement Preparation
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The purpose of this study was to examine the effects of housing equity on retirement preparation of Korean baby boomers. Using data from 2011 Survey of Household Finance, 2,196 baby boomer household were examined. Life-cycle hypothesis, behavioral life-cycle theory, and theory of planned behavior provided a theoretical framework of this study. The results showed that 78% of total assets of the baby boomers was real estate assets. Among them hosing equity was almost half of the total real estate asset. In terms of baby boomers' financial status, many of them did not meet the liquid asset to income guideline suggesting that baby boomers were very vulnerable to economic risks such as unexpected unemployment or retirement. The results on the effects of housing equity indicated that overall, housing equity was positively related to the preparation of retirement of baby boomers. In particular, the results supported the behavioral life-cycle theory, indicating that baby boomers considered their housing equity as a distinct asset from their retirement asset.

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