Is There Really a Retirement Savings Crisis? An NRRI Analysis

Posted: 10 Mar 2010

See all articles by Alicia H. Munnell

Alicia H. Munnell

Boston College - Center for Retirement Research

Anthony Webb

Boston College - Center for Retirement Research

Francesca Golub-Sass

Boston College - Center For Retirement Research (CRR)

Date Written: July 2007

Abstract

The National Retirement Risk Index (NRRI) has shown that even if households work to age 65 and annuitize all their financial assets, including the receipts from reverse mortgages on their homes, nearly 45 percent will be 'at risk' of being unable to maintain their standard of living in retirement. That is, these households are projected to have replacement rates retirement income as a share of pre-retirement income that fall more than 10 percent short of a target rate designed to maintain their pre-retirement living standard. More realistic assumptions regarding earlier retirement and reluctance to annuitize 401(k) balances or tap housing equity would put the percentage 'at risk' considerably higher, as would the inclusion of rapidly growing health care costs. Yet, recent academic articles and press stories question whether Americans are facing a retirement income crisis...

Suggested Citation

Munnell, Alicia and Webb, Anthony and Golub-Sass, Francesca, Is There Really a Retirement Savings Crisis? An NRRI Analysis (July 2007). Available at SSRN: https://ssrn.com/abstract=1116391

Alicia Munnell (Contact Author)

Boston College - Center for Retirement Research ( email )

Fulton Hall 550
Chestnut Hill, MA 02467
United States
617-552-1762 (Phone)

Anthony Webb

Boston College - Center for Retirement Research ( email )

Fulton Hall 550
Chestnut Hill, MA 02467
United States

Francesca Golub-Sass

Boston College - Center For Retirement Research (CRR) ( email )

Chestnut Hill, MA 02167
United States

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