b'CHAPTER 5 | TRACKING THE IMPACT OF THE GREAT RECESSIONFIGURE 5-3Percent reporting important reasons for spending decline by age: 2009Source: Hurd and Rohwedder (2010c).90%80%70%60%50%40%30% Men Women20%10%0%Age: 55-64 Age: 65-74 Age: 75+Need to reduce debt Stocks downLower income Lower house valueWorse employment Worried about economic futureor very important. Nearly 85% of participantsperiod, suggesting that older households areThose who thought that the stock market would indicate that being worried about the economicbetter protected against the impact of recession.not be likely to recover within a year decreased future is an important reason for reducing spend- The 2009 internet survey also asks HRStheir spending by a significantly larger degree ing in the past year. Those in the older age groupsparticipants to estimate percentage changes inthan those who were more optimistic.are less likely to have reduced spending becausethe value of their homes, employer retirement of the need to reduce debt, having a lower income,saving plans, individual retirement accountsVulnerable Groupsor rising unemployment levels. Actual spending(Keogh plans), investment trusts, mutual funds,Researchers have also investigated the impact changes from the CAMS show that changesdirectly held stocks, and stocks held throughof the recession on more vulnerable populations during the recession are sharply larger than in theother assets. Another question assesses theirwho may have been hit particularly hard by the period from 2001 to 2006. Among those aged 50subjective expectation that the stock market willrecession. Older workers with disabilities may to 64, spending declines by 7.6% more in 2007 torecover in one years time. Housing and financialhave been more likely to lose their jobs during 2009 compared to 2001 to 2006. In contrast, forlosses have a large negative impact on spending.the recession and less likely to find another job. those over age 64, spending declines 3.4% moreJob loss during the recession led to a 10% de- There were significantly higher rates of invol-in the later period when compared to the earliercrease in spending overall (Christelis et al. 2015).untary job loss in the period from 2006 to 2008 89'