The Wealth and Assets Survey and the English Longitudinal Study of Ageing

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The Wealth and Assets Survey and the English
Longitudinal Study of Ageing

• Angela Donkin

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Wealth and Assets Survey
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Key facts

• Survey of all adults 16 in the household
• Aim is for approx. 20, 000 households cross
  section plus 10, 000 panel decision on sample
  size by October.
• Panel every one or two years
• Fieldwork will take a year
• Top line results end 2007
• Led by ONS
• Will be publicly available
• Aim to link to administrative data e.g. from DWP
  and HMRC

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Development Timeline
Programming Recruitment
Main Survey
Programming Recruitment Pilot
Feasibility Study Further Cognitive
testing Liaison with customers
June 05 Sep 05 Jan 06 April-July
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Learning from pilot Final decision to go
ahead Tweaks to Questionnaire and recruitment
Prioritisation Learning from testing Questionnaire
Development
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Coverage I

• Number in household and relationships
• Household information
• tenure
• value of main residence
• mortgage/loans/equity release on main property
• value of possessions including vehicles/caravans/p
  lanes and bicycles!
• information on budgeting/financial planning

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Individual Information

• Socio-demographic variables
• Income from all sources
• Business assets
• Attitudes to Saving and Borrowing
• Major items of expenditure
• Retirement plans/reasons for retirement
• Pensions and reasons for not contributing

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Individual Information II

• Financial Assets (accounts, Current account debt,
  investments)
• Non-mortgage debt
• Ownership of additional property
• Financial management/awareness
• Financial Expectations
• Childrens Income and Assets
• Inheritance (including attitudes to inheritance_
• Trust
• Health and caring
• NI number

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State pensions

• There are virtually no questions on state
  pensions
• How much, in pounds per week do you think you
  will get from the state pensions when you retire?
  (at current price levels.
• (asked if over 40)
• Will link NIRS data to get full state pension
  entitlement

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Key Facts about ELSA

• People aged 50 and their partners
• Multi-disciplinary - relationship between
  peoples health and their economic and social
  circumstances
• Longitudinal
• Comparative - half funded by National Institute
  on Aging for comparison with United States (HRS)
  and Europe (SHARE)
• Policy relevant - half funded by consortium of UK
  government departments - applied research with
  long term aims

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Interview Content Wave 1, 2002/3

• Household demographics
• Individual demographics
• Health
• Social participation
• Work and pensions
• Income and assets
• Housing
• Cognitive function
• Psychosocial health
• Expectations
• Final questions (including consents)
• Timed walk
• Self-completion

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Interview ContentWave 2, 2004/5

• Core interview remains the same but with
  enhancements
• Nurse Visit
• Exit interview with named contacts
• Follow people into institutional care

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Work and Pensions (WP)

•    Activities done in the last month.
•    Current self reported labour market position
•    Voluntary work
•    Details of current/most recent job
•    Earnings/self employment income
•    Earnings from subsidiary employment
•   Details of current and past pensions
•    Reasons for retirement

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Achieved Sample Size
Numbers
Age Men Women Total Men Women
Total Under 50 104 472 576 2
7 5 50-54 920 1156 2076 17
17 17 55-59 1030 1171 2201
19 17 18 60-64 813 883 1696
15 13 14 65-69 806 912
1718 15 13 14 70-74 680
797 1477 13 12 12 75-79
498 596 1094 9 9
9 80 485 777 1262 9 11
10 Total 5336 6764 12100 100
100 100
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Some results

• The relationship between wealth in one domain and
  wealth in another
• The impact of financial literacy on wealth
• Expected longevity and wealth
• The self employed

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Wealth

• 40 lowest incomes expect to receive nothing from
  private pensions.
• The poorest in any one type of wealth domain are
  poorest in others.
• Those with fewest assets are least likely to
  continue working and are least likely to receive
  an inheritance.
• Those who are about to retire will have higher
  pension wealth than those who are currently
  retired.

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Net financial wealth by broad portfolio type
Individuals aged 50-59
IFS Analysis
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Numerical ability

• Numerical ability greater
• For men than women
• For those who are younger
• Numerical ability strongly associated with
  education
• Declines more rapidly in the more highly educated
  over time

IFS Analysis
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Numerical ability and wealth

• More numerate
• 22 p.points more likely to own shares
• 13 pp more likely to have a private pension
• 30 pp more likely to know their pension accrual
  rate
• Signif. more likely to feel they have had enough
  info about their current pension
• after controlling for education and wealth

IFS Analysis
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• The more numerically able
• Are MORE likely to be in a group who do not
  expect to have adequate resources in retirement
• Are 14, 000 better off by their fifties, after
  controlling for education.
• If also highly educated then 28, 000 better
  off.

IFS Analysis
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Actual versus expected longevity
IFS Analysis
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Expected longevity and wealth
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Expected longevity and wealth
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The self-employed
Individuals aged 50 - SPA
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The self-employed
Individuals aged 50 - SPA
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The self-employed
Individuals aged 50 - SPA
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Data availability

• Wave one is available now (plus pension wealth
  variables)
• Wave two available in January at ESRC data
  archive
• Have consent to link ELSA to National Insurance
  Records, Benefit records and tax credits.
• Need to consider access arrangements for this
• Data collected every 2 years
• Nurse visit every 4 years