Are Americans Prepared for Retirement?

13 Pages Posted: 4 Nov 1998 Last revised: 19 Jul 2011

See all articles by Yoonkyung Yuh

Yoonkyung Yuh

Ewha Womans University

Catherine Phillips Montalto

Ohio State University (OSU) - Department of Human Sciences

Sherman D. Hanna

Ohio State University (OSU)


This study estimates the adequacy of retirement wealth of pre-retirement households using a 1995 national sample of households. Retirement wealth is projected using planned retirement age and portfolio allocation. Retirement needs are estimated from expenditure functions, and 52% of the households were adequately prepared. Households that spent less than income were much more likely to be adequately prepared for retirement than similar households that spent at least as much as income. Planned retirement age had a large effect on adequacy, but household income had a moderate independent effect on adequacy.

Keywords: Retirement Adequacy, Survey of Consumer Finances

JEL Classification: D1, D9, E2, G2, J1, J2

Suggested Citation

Yuh, Yoonkyung and Phillips Montalto, Catherine and Hanna, Sherman D., Are Americans Prepared for Retirement?. Financial Counseling and Planning, Vol. 9, No. 1, 1998. Available at SSRN:

Yoonkyung Yuh

Ewha Womans University ( email )

Shinsegae Building Rm 425
11-1 Daehyun-dong, Seodaemun-gu
Seoul 120-750
82-2-3277-4076 (Phone)
82-2-3277-2835 (Fax)

Catherine Phillips Montalto

Ohio State University (OSU) - Department of Human Sciences ( email )

United States
614-292-4571 (Phone)
614-292-7536 (Fax)

Sherman D. Hanna (Contact Author)

Ohio State University (OSU) ( email )

1787 Neil Avenue
Campbell 265D
Columbus, OH 43210
United States
614-292-4584 (Phone)

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