Brief How Will the Great Recession Affect Future Retirement Incomes?
Barbara Butrica, Richard W. Johnson, Karen E. Smith
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The financial impact of the 20072009 recession will reverberate into retirement for many working families, even those who did not lose their jobs. Average wages grew very slowly during the downturn, reducing lifetime earnings. Lower earnings leave less income to set aside for retirement and depress future Social Security and pension incomes. Although unusually strong wage growth in coming years could bail out younger workers, there is little recourse for workers now approaching traditional retirement ages. For those age 55 to 59 in 2008, the Great Recession will reduce average age-70 incomes by 5 percent.
Research Areas Economic mobility and inequality Wealth and financial well-being Aging and retirement
Tags Social Security Economic well-being Older workers Employment and income data Pensions Income and wealth distribution Retirement policy
Policy Centers Income and Benefits Policy Center