Understanding the Impact of the Low Interest Rate Environment on Retirement Security in the United States: A Review of Academic and Practitioner Research

ID: 4100
School: School of Civic Leadership, Business, and Social Change
Program: Government
Status: Completed
Start date: August 2019
End Date: May 2021

Description

After decades of declines in real and nominal interest rates, intensified by the Great Recession, COVID-19, and monetary policy responses, the United States has been and may continue to be in a protracted period of low interest rates. Persistent low-interest rates could affect the retirement security of Americans profoundly through direct impacts on investment returns and through impacts on the capacities of governments and the private sector to finance Social Security, pension funds, and other retirement savings mechanisms. This report examines academic and practitioner research on these topics critically, with an eye toward drawing common themes and conclusions, while reconciling and explaining discrepancies.

Principal investigators

  • Boyd, Don • Center for Policy Research, Rockefeller College • University at Albany - State University of New York

Additional investigators

Priorities addressed

Funding sources

Approved Products

2021

After decades of declines in real and nominal interest rates, intensified by the Great Recession, COVID-19, and monetary policy responses, the United States has been and may continue to be in a protracted period of low interest rates. Persistent low interest rates could affect the retirement security of Americans profoundly through direct impacts on investment returns and through impacts on the capacities of governments and the private sector to finance Social Security, pension funds, and other retirement savings mechanisms. This report examines academic and practitioner research on these topics critically, with an eye toward drawing common themes and conclusions, while reconciling and explaining discrepancies.