The Recent Stock Market Fluctuations and Retirement Income Adequacy
This paper analyzes the effect of wealth fluctuations on retirement income adequacy between 1992 and 2001. In addition, the paper estimates how financial wealth relative to income may develop in the medium to long-term. The average household was adequately prepared for retirement, even after the decline in the stock market, if it is assumed that retirement income needs fall in real terms with age. But if a fixed real level of consumption is considered for retirement income adequacy, the average household was more likely inadequately prepared for retirement, even after wealth increased dramatically in the late 1990s. Moreover, on average households can only expect to reach their peak wealth to income levels again within the next 10 to 20 years if increases in personal savings rates or rates of return are assumed. Without such changes, it is also unlikely that households will be able, on average, to reach an adequate level of retirement savings, assuming that their income needs in retirement do not decline in real terms.
Volume (Year): 32 (2006)
Issue (Month): 1 (Winter)
|Contact details of provider:|| Postal: c/o Dr. Alexandre Olbrecht, The Anisfield School of Business 205, Ramapo College, 505 Ramapo Valley Road, Ramapo, New Jersey 07430, USA|
Phone: (201) 684-7346
Web page: https://www.quinnipiac.edu/eea/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Mirer, Thad W, 1979. "The Wealth-Age Relation among the Aged," American Economic Review, American Economic Association, vol. 69(3), pages 435-443, June.
- Eric M. Engen & William G. Gale, 2000. "The Effects of 401(k) Plans on Household Wealth: Differences Across Earnings Groups," NBER Working Papers 8032, National Bureau of Economic Research, Inc.
- Robert B. Barsky & Miles S. Kimball & F. Thomas Juster & Matthew D. Shapiro, 1995. "Preference Parameters and Behavioral Heterogeneity: An Experimental Approach in the Health and Retirement Survey," NBER Working Papers 5213, National Bureau of Economic Research, Inc.
- James M. Poterba & Steven F. Venti, 1998.
"Personal Retirement Saving Programs and Asset Accumulation: Reconciling the Evidence,"
in: Frontiers in the Economics of Aging, pages 23-124
National Bureau of Economic Research, Inc.
- James M. Poterba & Steven F. Venti & David A. Wise, 1996. "Personal Retirement Saving Programs and Asset Accumulation: Reconciling the Evidence," NBER Working Papers 5599, National Bureau of Economic Research, Inc.
- James M. Poterba & Steven F. Venti & David A. Wise, 1996. "How Retirement Saving Programs Increase Saving," Journal of Economic Perspectives, American Economic Association, vol. 10(4), pages 91-112, Fall.
- Robert B. Barsky & F. Thomas Juster & Miles S. Kimball & Matthew D. Shapiro, 1997. "Preference Parameters and Behavioral Heterogeneity: An Experimental Approach in the Health and Retirement Study," The Quarterly Journal of Economics, Oxford University Press, vol. 112(2), pages 537-579.
When requesting a correction, please mention this item's handle: RePEc:eej:eeconj:v:32:y:2006:i:1:p:67-81. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Victor Matheson, College of the Holy Cross)
If references are entirely missing, you can add them using this form.