Tag: effect of financial crisis
The brief’s key findings are: The economic crisis has posed a ‘stress test’ for the automatic benefit adjustments in Sweden’s pension system. Slow wage growth and a collapse in equity values triggered a first-time benefit cut for 2010. Policymakers have revised the automatic adjustments, however, to moderate the decline. Thus, even automatic adjustments may b…
Abstract This paper simulates the impact of the 2008 stock market crash on future retirement savings under alternative scenarios. If stocks remain depressed as after the 1974 crash, 20 percent of pre-boomers born 1941-45 and 22 percent of late boomers born 1961-65 would see their retirement incomes drop 10 percent or more. Working another year…