The Effects of the Economic Crisis on Retirement and Spending

Published: 2010
Project ID: UM10-06


The United States is experiencing the greatest economic crisis since the Great Depression.  Housing prices have declined, leaving many with negative equity; falling stock values have substantially reduced household net worth; high and increasing rates of job loss jeopardize the economic foundations of many families. Little is known about how these different effects are distributed in the population, and even less is known about how households and individuals adjust in the domains of actual and anticipated retirement and spending.  We propose to assess, quantitatively, the effects of the economic crisis, both gross and net of household behavioral responses.