The analysis of age-specific wealth distributions for selected EU countries
Jože Sambt, University of Ljubljana, Faculty of Economics
Boris Cupeljic, University of Ljubljana, Faculty of Economics
During their lifetime, labour income and consumption
vary strongly. The economic dependency in young and old age is financed through transfers and asset-based reallocation (i.e. asset income minus savings). People save a part of their income for different reasons (for example future consumption, uncertainty, bequests). When they retire, their earnings significantly decrease, and a part of their consumption in old age has to be financed by the previously saved income. Due to different sources of financing their consumption, each cohort has different wealth structure. This paper analyses wealth that people hold at different ages in selected countries by using the data from the household wealth survey. From the Household Consumption and Finance Survey (HFCS), we calculate age-specific wealth profiles. HFCS provides data on the households’ ownership of different types of assets and liabilities, such as deposits, stocks, bonds, loans. Preliminary results show differences between the age wealth structure for selected countries.