Presentation Title

Defined Contribution Plans and the 2008 Financial Crisis

Student Presenter(s) and Advisor

Katherine Beall, Lake Forest CollegeFollow

Location

Lilliard Science Center A 044

Abstract

I use the 2008 financial crisis as a natural experiment to stress test how people with defined contribution retirement plans react during recessionary periods. Using the Survey of Consumer Finances, I find that people did not significantly alter their participation rate or the percent or amount of income contributed to their DC plan. The most notable identifiable change is that DC plans were, in fact, valued more three years after the crisis than before. These findings are consistent with DC balances largely mirroring stock market activity and not being overly sensitive to behavioral responses following a financial crisis.

Presentation Type

Individual Presentation

Start Date

4-10-2018 1:00 PM

End Date

4-10-2018 2:15 PM

Panel

Money Matters

Panel Moderator

Ken Davis

Field of Study for Presentation

Economics, Finance, Mathematics

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Apr 10th, 1:00 PM Apr 10th, 2:15 PM

Defined Contribution Plans and the 2008 Financial Crisis

Lilliard Science Center A 044

I use the 2008 financial crisis as a natural experiment to stress test how people with defined contribution retirement plans react during recessionary periods. Using the Survey of Consumer Finances, I find that people did not significantly alter their participation rate or the percent or amount of income contributed to their DC plan. The most notable identifiable change is that DC plans were, in fact, valued more three years after the crisis than before. These findings are consistent with DC balances largely mirroring stock market activity and not being overly sensitive to behavioral responses following a financial crisis.