Effects of Stock Market Fluctuations on the Adequacy of Retirement Wealth Accumulation

TitleEffects of Stock Market Fluctuations on the Adequacy of Retirement Wealth Accumulation
Publication TypeReport
Year of Publication2004
AuthorsEngen, EM, Gale, WG, Uccello, CE
InstitutionCenter for Retirement Research at Boston College
Call Numberwp_2004/Engen_etal2004-16.pdf
KeywordsNet Worth and Assets
Abstract

This paper examines the relation between fluctuations in the aggregate value of equities and the adequacy of households saving for retirement. We find that many and perhaps most households appear to be saving adequate amounts for retirement, but almost no link between stock values and the adequacy of retirement saving. Historical variation in equity values and ownership correlates poorly with historical variation in the adequacy of saving. Even a simulated 40 percent decline in stocks has little effect on the adequacy of saving. The results occur because equities are concentrated among households with significant amounts of other wealth.

URLhttp://www.bc.edu/centers/crr/papers/wp_2004-16.pdf
Endnote Keywords

Stock Market/Retirement Wealth

Endnote ID

12462

Citation Key5591