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

Eric M. Engen (), William Gale and Cori E. Uccello ()
Additional contact information
Eric M. Engen: American Enterprise Institute
Cori E. Uccello: Urban Institute

Working Papers, Center for Retirement Research at Boston College from Center for Retirement Research

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.

Keywords: retirement; saving; stocks; equities (search for similar items in EconPapers)
JEL-codes: D91 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2004-05
New Economics Papers: this item is included in nep-fin and nep-fmk
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Citations: View citations in EconPapers (2)

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http://crr.bc.edu/working-papers/effects-of-stock- ... wealth-accumulation/

Related works:
Journal Article: EFFECTS OF STOCK MARKET FLUCTUATIONS ON THE ADEQUACY OF RETIREMENT WEALTH ACCUMULATION (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:crr:crrwps:2004-16

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