What the Stock Market Decline Means for the Financial Security and Retirement Choices of the Near-Retirement Population

摘要

The average person approaching retirement age is not likely to suffer a life-changing financial loss from the stock market downturn of 2007-2009. To some extent, average households on the cusp of retirement are shielded by the fact that stock market holdings do not loom especially large in their overall wealth. In addition, the near-retirement generation is more likely than younger generations to have a defined benefit plan as a primary pension, rather than a defined contribution plan, which also cushions the decline in wealth due to a stock market decline.