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*, Lieke Kools

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

Abstract

This paper describes how individuals update their retirement plans in response to sub-stantial 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. (c) 2021 The Author(s). Published by Elsevier B.V. This is an open access article under the CC BY license ( http://creativecommons.org/licenses/by/4.0/ )

Original languageEnglish
Pages (from-to)126-166
Number of pages41
JournalJournal of Economic Behavior & Organization
Volume188
DOIs
Publication statusPublished - Aug 2021

Keywords

  • Macroeconomic shocks
  • Pensions
  • Savings
  • Aging
  • HOUSE PRICES
  • CONSUMPTION

Fingerprint

Dive into the research topics of 'Cutting one's coat according to one's cloth - How did the great recession affect retirement resources and expenditure goals?'. Together they form a unique fingerprint.

Cite this