Research

Household Economic Shocks Increase Retirement Wealth Inequality

April 9, 2016

Economic shocks, such as job-loss, have particularly adverse effects on retirement savings of workers in low-income households, exacerbating retirement savings inequality.

Low income households are more likely than moderate- and upper-income households to experience economic shocks. Workers in low-income households are also more likely to withdraw from their retirement account after a shock. This study shows that these shocks have significant effects on the finances of low-income households, causing up to a third of all withdrawals, and possibly more.

Authors: Teresa Ghilarducci, Bridget Fisher, Siavash Radpour, and Anthony Webb
Download PDF

About SCEPA

SCEPA works to focus the public economics debate on the role government can and should play in the real productive economy - that of business, management, and labor - to raise living standards, create economic security, and attain full employment.