What Explains Changes in Retirement Plans During the Great Recession?

@article{Goda2011WhatEC,
  title={What Explains Changes in Retirement Plans During the Great Recession?},
  author={Gopi Shah Goda and John B. Shoven and Sita Nataraj Slavov},
  journal={ERN: Other Macroeconomics: Employment},
  year={2011}
}
We examine changes in subjective probabilities regarding retirement between the 2006 and 2008 waves of the Health and Retirement Study. Using a first-difference approach to eliminate individual heterogeneity, we find that the steep drop in asset prices in 2008 increased the reported probability of working at age 62 during the Great Recession. Increasing unemployment at least partly attenuated this effect, but subjective probabilities of working did not respond to changes in housing markets… 
View on SSRN
aeaweb.org
74 Citations
Highly Influential Citations
6
Background Citations
28
Methods Citations
4
Results Citations
5

74 Citations

Did the Great Recession Influence Retirement Plans?
TLDR
It is found that individuals with defined benefit plans are more prone to change toward plans to stop work before the stock market declined, whereas the opposite trend holds for those without pensions.
Retirement Decisions in Recessionary Times: Evidence from Spain
The recession that started in the United States in December 2007 has had a significant impact on the Spanish economy through a large increase of the unemployment rate and the bursting of the housing…
Recessions and Retirement: How Stock and Labor Market Fluctuations Affect Older Workers
The sharp drop in equity values that occurred at the beginning of the recent financial and economic crisis led to widespread concern about the effect of the crisis on retirement security. Between…
Does Stock Market Performance Influence Retirement Intentions?
Media reports predicted that the stock market decline in October 2008 would cause changes in retirement intentions, due to declines in retirement assets. We use panel data from the Health and…
Changes in Retirement Savings during the COVID Pandemic
This paper documents changes in retirement saving patterns at the onset of the COVID-19 pandemic. We construct a large panel of U.S. tax data, including tens of millions of person-year observations,…
The Evolution of Retirement Wealth
Is the current mix of tax preferences for employer-sponsored pensions and individual retirement saving in the U.S. delivering the best possible retirement-preparedness across and within generations?…
Recession and expected retirement age: another look at the evidence.
TLDR
The authors' results confirm that economic changes impinge on retirement expectations, but they also show stronger influences of other factors such as debts and the work environment.
The effect of the financial crisis on the retirement plans of older workers in England
Economic Consequences of the Great Recession: Evidence from the Panel Study of Income Dynamics
The paper uses micro-survey data from successive waves of the Panel Study on Income Dynamics to investigate the distribution of wealth and job losses during the 2007-09 recession for difference…
EXPECTATIONS, LOSS AVERSION, AND RETIREMENT DECISIONS IN THE CONTEXT OF THE 2009 CRISIS IN EUROPE
We estimate a reduced form model of expectations-based reference-dependent preferences to explain job retention of older workers in Europe in the context of the 2009 economic crisis. Using individual…
...
...

References

SHOWING 1-8 OF 8 REFERENCES
Does Stock Market Performance Influence Retirement Intentions?
Media reports predicted that the stock market decline in October 2008 would cause changes in retirement intentions, due to declines in retirement assets. We use panel data from the Health and…
The Market Crash and Mass Layoffs: How the Current Economic Crisis May Affect Retirement
Abstract Recent dramatic declines in U.S. stock and housing markets have led to widespread speculation that shrinking retirement accounts and falling home equity will lead workers to delay…
How Do Pension Changes Affect Retirement Preparedness? The Trend to Defined Contribution Plans and the Vulnerability of the Retirement Age Population to the Stock Market Decline of 2008-2009
Our findings suggest that although the consequences of the decline in the stock market are serious for those approaching their retirement, the average person approaching retirement age is not likely…
What the Stock Market Decline Means for the Financial Security and Retirement Choices of the Near-Retirement Population
This paper investigates the effect of the current recession on the near-retirement age population. Data from the Health and Retirement Study suggest that those approaching retirement age (early…
The Effects of Large Capital Gains on Work and Consumption
The authors examine how the large increase in wealth in the mid- to late 1990s affected retirement and consumption behavior. Specifically, the authors investigate how gains from stock holdings were…
The Effect of Large Capital Gains or Losses on Retirement
Goda, Gopi Shah, John B
  • Shoven, and Sita Nataraj Slavov, “Does Stock Market Performance Influence Retirement Expectations?,” Working Paper 16212,
  • 2009
Does Stock Market Performance Influence Retirement Expectations?, " Working Paper 16212
  • National Bureau of Economic Research
  • 2010