The real American retirement crisis

Andrew Biggs of the American Enterprise Institute claims there is no retirement crisis in the United States. Citing a recent report showing that senior incomes are high relative to other countries in the Organisation for Economic Co-operation and Development (OECD), Biggs downplays the fact that many American seniors are not retired: 30 percent of 65- to 69-year-olds in […]

Are Retirees Falling Short? Reconciling the Conflicting Evidence

Abstract This paper examines conflicting assessments of whether people will have adequate retirement income to maintain their pre-retirement standard of living. The studies that it examines use data from the Survey of Consumer Finances (SCF), the Health and Retirement Study (HRS), and the HRS supplement Consumption and Activities Mail Survey (CAMS). Critical components of the analysis are behavioral assumptions about household […]

Investment Returns: Defined Benefit vs. Defined Contribution Plans

The brief’s key findings are: The analysis compares returns by plan type from 1990-2012 using data from the U.S. Department of Labor’s Form 5500. During this period, defined benefit plans outperformed 401(k)s by an average of 0.7 percent per year, even after controlling for plan size and asset allocation. In addition, much of the money accumulated in 401(k)s […]

The Growing Funding Gap for State Pensions Puts Millions at Risk

Two new reports by the Pew Charitable Trusts suggest that state governments across the country are shortchanging their employee pension funds and aren’t adding enough money in emergency funding accounts to prepare for the next economic crisis or recession. While states have recouped much of the fiscal and economic ground they lost during the Great […]