Pensions and Homeownership after the Great Recession

Murray, Tim (2019): Pensions and Homeownership after the Great Recession.

Abstract

Retirees with a defined contribution plan have more risky retirement portfolios than households with a defined benefit plan. This paper explores how this risk caused changes in homeownership and renting for households with defined contribution plans after the Great Recession finding around a 10 percent decline in homeownership and 10 percent increase in renting for households with a defined contribution plan compared to those with a defined benefit plan. Future cohorts of retirees are less likely to have the guaranteed income of a defined benefit plan and may be more likely to use their housing equity than previous cohorts have.

• Item Type: MPRA Paper
• Language: English
• Keywords: Great Recession, Housing Equity, Retirement, Pension
• Subjects: D - Microeconomics > D1 - Household Behavior and Family Economics > D14 - Household Saving; Personal Finance; J - Labor and Demographic Economics > J1 - Demographic Economics > J14 - Economics of the Elderly ; Economics of the Handicapped ; Non-Labor Market Discrimination; J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J32 - Nonwage Labor Costs and Benefits ; Retirement Plans ; Private Pensions

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