Potential Impacts of the Great Recession on Future Retirement Incomes

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Wharton Pension Research Council Working Papers
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Retirement income
unemployment
recession
Social Security
pension
wealth
labor earnings
Economics
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This study examines the long-run effects of the Great Recession on future retirement incomes for working-age adults using a microsimulation model. We estimate that the recession will reduce average age-70 annual incomes by four percent. Retirement incomes will fall most sharply for those workers who were youngest when the recession began. They are most likely to have lost their jobs and the impact of lower wages will accumulate over their entire careers. High-income retirees with the most to lose will also see substantial absolute income declines, but their losses are not particularly large when measured relative to their projected incomes.

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2011-09-01
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The published version of this Working Paper may be found in the 2012 publication: Reshaping Retirement Security: Lessons from the Global Financial Crisis (https://pensionresearchcouncil.wharton.upenn.edu/publications/books/reshaping-retirement-security-lessons-from-the-global-financial-crisis/)
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