How Do Responses to the Downturn Vary by Household Characteristics?

Kelly Haverstick Norma B. Coe

IB#10-17

The brief’s key findings are:

  • Half of respondents to a 2009 CRR survey planned to respond to the downturn by working longer, saving more, or both.
  • Their choice was influenced by different factors:
    • “Work longer” was favored by those with large losses or a greater dependence on assets, less time to recover, and high anxiety;
    • “Save more” was favored by those with higher incomes, higher expectations for stock returns, and greater job security;
    • “Work longer and save more” predictably reflected a blend of these responses plus lower contribution rates.