2 Data
The primary data source in this study is SOFIE, a panel survey which started in October 2002 and is intended to run annually for eight years. SOFIE collects data on levels, sources and changes in income for New Zealand individuals and families. It also reports on major influences on income, such as employment and education experiences, household and family status and changes, demographic factors and health status. The survey covers 26,339 individuals of 10,244 households, representing 3,771,864 people.[1]
The data on assets and liabilities used in this study come from Wave 2, which ran from 1 October 2003 to 30 September 2004. Most of the analysis in this paper pertains to the household level.[2] The household's age is that of the `head' member, defined as the person who earns the highest income in the household. The analysis in 3 excludes ages 17 and below. In Section 5 we focus only on ages 45-64 because people in this age range are old enough to start thinking seriously about preparing for retirement.[3]
Notes
- [1]SOFIE’s target population is ordinary residents who live in private dwellings. Excluded from the survey sample are short-term overseas visitors (intending to stay for less than 12 months), non-NZ diplomats and diplomatic staff and their dependants, members of non-NZ armed forces stationed in NZ and their dependants, and residents of offshore islands other than Waiheke Island (Statistics New Zealand, 2006). A description of the HSS is provided in Appendix A.1. Differences between SOFIE and HSS data are outlined in Appendix A.2.
- [2]A household may have more than one family.
- [3]It is more challenging to apply the model to younger ages as the further one is from retirement, the more imprecise projections of retirement wealth, income and consumption become.
