(UM10-07) - The Financial Crisis and the Well-Being of Social Security Recipients
Matthew D. Shapiro
Both housing prices and stock market values have declined substantially since their peaks in 2006 and 2007. Retirees with substantial investments in stock or housing have therefore experienced significant declines in wealth and, potentially, in well-being. This proposal will use two surveys conducted after the stock market crash to assess how much the maximum level of consumption that retirees can sustain has fallen in response to the declines in stock and house prices, and to quantify the role of Social Security retirement income in insulating retirees against effects of the financial crisis.