Were They Prepared for Retirement? Financial Status at Advanced Ages in the HRS and AHEAD Cohorts

The results raise several issues. First, a noticeable fraction of persons die with virtually no financial assets—46.1 percent with less than $10,000. Based on a replacement rate comparison, many of these may be deemed to have been well-prepared for retirement, in the sense that their income in their final years was not substantially lower than their income in their late 50s or early 60s. Yet with such low asset levels, they would have little capacity to pay for unanticipated needs such as health or other shocks or to pay for entertainment, travel, or other activities.