Effects of stock market fluctuations on the adequacy of retirement wealth accumulation

Effects of stock market fluctuations on the adequacy of retirement wealth accumulation

Effects of stock market fluctuations on the adequacy of retirement wealth accumulation

Engen

Eric M.

Engen, Eric M.

Author

Author

Gale

William G.

Gale, William G.

Author

Author

Uccello

Cori E.

Uccello, Cori E.

Author

Author

text

working paper

Chestnut Hill, Mass. Center for Retirement Research at Boston College20042004monographic

Chestnut Hill, Mass.

Chestnut Hill, Mass.

Center for Retirement Research at Boston College

2004

2004

monographic

Englisheng

English

eng

electronicapplication/pdfborn digital

electronic

application/pdf

born digital

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.

Eric M. Engen, William G. Gale, and Cori E. Uccello.

CRR WP2004-16

CRR WP2004-16

CRR WP

2004-16

http://crr.bc.edu/images/stories/Working_Papers/wp_2004-16.pdf

MChBEnglisheng

MChB

Englisheng

English

eng