Retirement security and the stock market crash

Butrica, Barbara A., Karen E. Smith, and Eric J. Toder. “Retirement security and the stock market crash”. CRR WP 2009-30, Chestnut Hill, Mass.: Center for Retirement Research at Boston College, November 2009. http://hdl.handle.net/2345/bc-ir:104908.
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Abstract

This paper simulates the impact of the 2008 stock market crash on future retirement savings under alternative scenarios. If stocks remain depressed as after the 1974 crash, 20 percent of pre-boomers born 1941-45 and 22 percent of late boomers born 1961-65 would see their retirement incomes drop 10 percent or more. Working another year would reduce the share of these big losers to 14 percent for late boomers. Because most pre-boomers were already retired, their share of big losers would decline slightly, to 19 percent. Delaying retirement would disproportionately benefit low-income people because their additional earnings exceed their stock market losses.

Title
Retirement security and the stock market crash: What are the possible outcomes?
Author
Butrica, Barbara A.
Smith, Karen E.
Toder, Eric J.
Center
Center for Retirement Research
Genre
working paper
Date Issued
November 2009
Publisher
Center for Retirement Research at Boston College
Series Title
CRR WP
Series Number
2009-30
Persistent Link
http://hdl.handle.net/2345/bc-ir:104908
Use Restrictions
These materials are made available for use in research, teaching and private study, pursuant to U.S. Copyright Law. The user must assume full responsibility for any use of the materials, including but not limited to, infringement of copyright and publication rights of reproduced materials. Any materials used for academic research or otherwise should be fully credited with the source. The publisher or original authors may retain copyright to the materials.
Subject
Financing retirement

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