Retirement savings inequality: Different effects of earnings shocks, Portfolio selections, and employer contributions by worker earnings level

Joelle Saad-Lessler, Teresa Ghilarducci, Gayle L. Reznik

Research output: Contribution to journalArticlepeer-review

2 Scopus citations

Abstract

After the Great Recession of 2007-2009, 64 percent of higher-earning workers and 56 percent of lower earners experienced increases in their accumulated retirement savings. For our 2009-2011 study period, we match Survey of Income and Program Participation data to Social Security Administration earnings records to examine retirement savings outcomes by earnings level and to identify factors that may underlie differences. The number of years with an earnings loss of 10 percent or more, the number of nonemployment spells, a decrease in employer contributions to a worker's defined contribution retirement plan, and less diversified investment portfolios barely affect the accumulated savings of higher earners, but are associated with decreased savings for lower earners. These differences may contribute to a growing retirement wealth gap.

Original languageEnglish
Pages (from-to)1-17
Number of pages17
JournalSocial Security Bulletin
Volume78
Issue number3
StatePublished - 1 Aug 2018

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