Retirement Security

Why Do Late Boomers Have So Little Retirement Wealth?

Published: August 1, 2020 | 9:11 am | Posted in: Retirement Security

Over the last 40 years, the retirement system has shifted from defined benefit plans to defined contribution plans, primarily 401(k)s and Individual Retirement Accounts (IRAs). This shift has been accompanied by a decline in Social Security benefits relative to pre-retirement earnings as the program’s Full Retirement Age has moved from 65 to 67. Thus, the […]

The Forgotten Middle: Many Middle-Income Seniors Will Have Insufficient Resources For Housing And Health Care

Published: December 21, 2019 | 9:57 pm | Posted in: Private Pensions

As people age and require more assistance with daily living and health needs, a range of housing and care options is available. Over the past four decades the market for seniors housing and care—including assisted living and independent living communities—has greatly expanded to accommodate people with more complex needs. These settings provide housing in a […]

How Do Older Workers Use Nontraditional Jobs?

Published: October 29, 2019 | 4:37 pm | Posted in: Private Pensions

Working consistently through one’s fifties and early sixties is key to attaining retirement security. However, workers also need access to retirement plans – so they can continue to accumulate resources – and health insurance – so they can avoid withdrawing assets in the event of a health shock. Workers without access to these benefits will […]

Will More Workers Have Nontraditional Jobs as Globalization and Automation Spread?

Published: October 29, 2019 | 3:08 pm | Posted in: Private Pensions

Recent research has called attention to alternative employment arrangements that often leave workers without retirement and health benefits and with income instability. At the same time, workers are facing increasing competition from automation and globalization. This competition is of special concern for older workers, who increasingly need longer careers to secure an adequate retirement and […]

Will the Financial Fragility of Retirees Increase?

Published: August 21, 2019 | 9:33 pm | Posted in: Retirement Security

The elderly have long been seen as financially fragile, meaning that they may be ill-equipped to absorb a financial shock. The key reason is that, once retired, they have little ability to increase their income compared to working households. Going forward, retirees will get less of their income from Social Security and traditional pensions and […]

401(K)/IRA HOLDINGS IN 2016: AN UPDATE FROM THE SCF

Published: October 12, 2017 | 8:18 pm | Posted in: Private Pensions

Introduction The key supplement to Social Security benefits is accumulations in employer-sponsored retirement plans. Increasingly these accumulations occur in 401(k) plans and Individual Retirement Accounts (IRAs). The release of the Federal Reserve’s 2016 Survey of Consumer Finances (SCF) is a great opportunity to see how a strengthening economy, the continued maturation of the 401(k) system, […]

Are Retirees Falling Short? Reconciling the Conflicting Evidence

Published: May 2, 2017 | 1:44 pm | Posted in: Retirement Security

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

Published: May 2, 2017 | 1:42 pm | Posted in: Private Pensions

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 […]

Clearing a Path for State-based Retirement Plans

Published: July 15, 2015 | 6:11 pm | Posted in: Private Pensions

What’s the number one way that workers save for retirement? Job-based 401(k) plans, which provide a vehicle for workers to put aside pre-tax dollars that are often matched by their employers. About one-third of American workers lack access to a retirement plan at work. While workers without access to a workplace plan can save on […]

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