Financial Capability and Asset Holding in Later Life draws attention to the financial wellbeing and vulnerability of older people in the population of the United States of America (USA). The central premise of the book is that financial wellbeing is created across decades, though typically most pronounced in older age when there is little opportunity to reverse a lifetime of disadvantage. This focus illustrates the ‘inherent link between older peoples' financial well-being and their earlier decisions and experiences, embedded in, and shaped by, the specific socio-economic, cultural, historical and geographical conditions in which they grow up’ (p. xvii). Historical structural disadvantage can often be compounded by, or produce, limited financial knowledge and skills. It is in this context that lifecourse perspective and financial capability are established as two key themes underpinning the substantive content of the book.
The scene is usefully set with an overview of the economic and financial status of older Americans in Part One, while Part Two focuses on the financial vulnerability of specific population groups (e.g. African American, Hispanic, Native American and migrant older adults) and thus on older people as a widely differentiated population, with varying levels of health, wealth, income and assets. Chapters 3–7 bring to life the reality of the historically specific nature of older peoples' financial wellbeing, with Williams Shanks and Leigh, in Chapter 3, offering a particularly stark illustration of the enduring and differentiated impact of historical policy making on older African Americans' retirement security. This section of the book also draws out the important issue of intergenerational inequality. While populist headlines often present a picture of relative affluence among older people – particularly the so-called ‘baby boomers’ – this book offers a clear articulation of the important, and sometimes overlooked, issue of intergenerational wealth inequality.
Part Three offers a very welcome focus on ways of improving the position of financially vulnerable older adults, beyond financial knowledge and skills. With the authors making policy and practice suggestions for improving access to quality financial products and services, consumer protection, opportunities for income generation and wealth preservation, and financial information and guidance, there is a clear recognition that financial capability is not sufficient if the financial products and services available do not meet older people's needs. Indeed, the more we focus on the individual and their financial capability, the greater the danger of ignoring the importance of suitable and attractive products and services, placing less responsibility on markets, governments and regulators. While some chapters are (inevitably) more descriptive than others, containing greater theoretical insights, this edited collection, taken as a whole, nits together very well.
Overall, there is much of interest and relevance to academics, policy makers and practitioners with an interest in income and wealth inequality, personal finance, vulnerability and ageing. In many advanced economies, populations are ageing, and a key consequence of increased life expectancy is that people will have to manage their retirement income and assets over a longer period than past generations, but research often suggests that people frequently under-estimate how long they will live and find it difficult to plan ahead. Financial wellbeing and vulnerability in later life is thus a global policy issue. With a call to action for addressing, much earlier on in the lifecourse, the difficulties that (some) older people increasingly face in obtaining financial security throughout retirement, the book is both timely and internationally relevant; successfully combining empirical findings, economic and social theory, and case studies to produce a coherent and captivating read.
