Cutting one’s coat according to one’s cloth – How did the great recession affect retirement resources and expenditure goals?

Jochem de Bresser, Marike Knoef and Lieke Kools

Journal of Economic Behavior & Organization, 2021, vol. 188, issue C, 126-166

Abstract: This paper describes how individuals update their retirement plans in response to substantial shocks in pension wealth during the Great Recession. Using a unique combination of survey and administrative panel data from before and after the Great Recession in the Netherlands, we investigate the causal relation between wealth and retirement expenditure goals. We separate ‘pure’ wealth effects from macro factors such as general pessimism. The estimates show that a negative shock in annuitized pension wealth of 100 euros reduced retirement expenditure goals with 24–33 euros. The effects are relatively large for old and high-income individuals.

Keywords: Macroeconomic shocks; Pensions; Savings; Aging (search for similar items in EconPapers)
JEL-codes: D14 D31 J14 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0167268121001967
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:188:y:2021:i:c:p:126-166

DOI: 10.1016/j.jebo.2021.05.010

Access Statistics for this article

Journal of Economic Behavior & Organization is currently edited by Houser, D. and Puzzello, D.

More articles in Journal of Economic Behavior & Organization from Elsevier
Bibliographic data for series maintained by Catherine Liu ().