Brief The Potential Impact of the Great Recession on Future Retirement Incomes
Barbara Butrica, Richard W. Johnson, Karen E. Smith
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This study examines the long-run effects of the Great Recession on future retirement incomes for working-age adults in 2008. The recession will reduce average annual incomes at age 70 by 4 percent, primarily because the downturn slowed wage growth. More than 700,000 adults will fall into or near poverty at age 70 because of the Great Recession. Unless wage levels rebound sharply, future retirement incomes will decline 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.
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