My IRA: Making Up Ground or Cashing It in?

Authors

  • Bing Chen Wenzhou-Kean University
  • Frank P. Stafford University of Michigan – Ann Arbor
  • Xiaohui Yang Fairleigh Dickinson University

DOI:

https://doi.org/10.33423/jabe.v27i1.7504

Keywords:

business, economics, IRA management, life cycle savings, capital gains and savings

Abstract

We interpret participation in Individual Retirement Accounts (IRAs) in the United States over time from both an economic and socio-behavioral perspective. We report an IRA plateau with about 33% of families aged 30-64 participating during 1999 – 2007. The participation rate has fallen steadily to about 23% in recent years. From an economic perspective, expectations of greater non-pension retirement resources appear to induce a decline in IRA participation. Greater current resources lead to more persistent pension participation. In terms of social factors, we observe notable gender differences in the composition of IRAs.

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Published

2025-01-26

How to Cite

Chen, B., Stafford, F. P., & Yang, X. (2025). My IRA: Making Up Ground or Cashing It in?. Journal of Applied Business and Economics, 27(1). https://doi.org/10.33423/jabe.v27i1.7504

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Articles