An Examination of Retirement Income Adequacy Measures and Factors Affecting Retirement Preparedness
41 Pages Posted: 23 Sep 2008 Last revised: 5 Oct 2010
Date Written: September 19, 2008
This article uses a consistent methodology to estimate several retirement income adequacy measures for households that participate in two national surveys. In addition, we examine the impact of a variety of factors on retirement preparedness. We find that Survey of Consumer Finances households have higher income replacement rates, but lower consumption replacement rates, than Health and Retirement Survey households. We also find that replacement rate estimates are sensitive to the treatment of home equity and assumed retirement age. Finally, the impact of household characteristics on the likelihood of being better prepared for retirement differs depending on the survey data and retirement income adequacy measure used.
Keywords: Retirement Income Adequacy, Survey of Consumer Finances, Health and Retirement Survey
JEL Classification: H31, H55, J26
Suggested Citation: Suggested Citation