Age Differences in IDA Savings Outcomes: Findings from the American Dream Demonstration

ABSTRACT

This study aims to develop a greater understanding of age differences in savings outcomes within Individual Development Accounts (IDAs). Participant data from the American Dream Demonstration (ADD) are examined for age differences in accumulated net deposits, average monthly net deposits, and deposit frequency. ADD program data are examined for savings match rates, monthly savings targets, direct deposit, and hours of financial education offered. Results indicate that, on average, older IDA participants have better savings outcomes than younger participants. Findings from this study suggest that impoverished middle-aged and older adults can save if provided an opportunity and incentives. However, success will depend on the characteristics of the programs.

KEYWORDS:

• Individual development accounts
• age
• asset building
• savings