Plenty of studies show Americans' retirement resources are lacking. The Employee Benefit Research Institute recently said there is a $4.6 trillion national shortfall in retirement savings to cover basic expenses and health care.
Friday, October 29, 2010
Wednesday, October 27, 2010
Americans Uncertain How to Save for Retirement
http://www.kiplinger.com
Americans' lack of retirement knowledge is reflected in savings data collected by the Employee Benefits Research Institute, a nonprofit research organization. The EBRI, in a report released this week, estimates that the nation's aggregate retirement savings shortfall is more than $4.5 trillion.
That's an average of $47,732 per person (among people aged 36 to 62).
When nursing-home and healthcare expenses are factored in, the shortfall grows even larger, the EBRI notes.
Americans' lack of retirement knowledge is reflected in savings data collected by the Employee Benefits Research Institute, a nonprofit research organization. The EBRI, in a report released this week, estimates that the nation's aggregate retirement savings shortfall is more than $4.5 trillion.
That's an average of $47,732 per person (among people aged 36 to 62).
When nursing-home and healthcare expenses are factored in, the shortfall grows even larger, the EBRI notes.
Nursing Home Costs a Big Factor in Retirement Adequacy Deficit
http://www.consumeraffairs.com
EBRI's analysis finds the aggregate national retirement savings shortfall is $4.6 trillion, for an overall average of $47,732 per individual. The average shortfall varies by age, gender, and marital status.
The Institute says adding nursing home and home health care expense increases the average individual retirement savings shortfall for married households by $25,317. Single males experience an average increase of $32,433, while single females have an increase of $46,425.
"This helps quantify just how large of an impact nursing home and home health care expenses can have on people in retirement," said Jack VanDerhei, EBRI research director and author of the report.
EBRI's estimates are present values (stated in 2010 dollars) at age 65, and represent the additional individual average amount needed at age 65 to eliminate expected deficits in retirement. EBRI notes this aggregate deficit assumed that people will receive current-law Social Security benefits.
EBRI's analysis finds the aggregate national retirement savings shortfall is $4.6 trillion, for an overall average of $47,732 per individual. The average shortfall varies by age, gender, and marital status.
The Institute says adding nursing home and home health care expense increases the average individual retirement savings shortfall for married households by $25,317. Single males experience an average increase of $32,433, while single females have an increase of $46,425.
"This helps quantify just how large of an impact nursing home and home health care expenses can have on people in retirement," said Jack VanDerhei, EBRI research director and author of the report.
EBRI's estimates are present values (stated in 2010 dollars) at age 65, and represent the additional individual average amount needed at age 65 to eliminate expected deficits in retirement. EBRI notes this aggregate deficit assumed that people will receive current-law Social Security benefits.
Retirement Plans Have Shortfalls of $4.6 Trillion, Study Says
http://www.theepochtimes.com/n2/content/view/44618/
Retirement plans possessed by American adults face a collective shortfall of $4.55 trillion, or more than $47,000 per individual, the Employee Benefit Research Institute (EBRI) said in a study published this week.
The numerical amounts represent how much extra money a retiree would have to save or earn than they currently do in order to adequately pay for basic expenses and over-the-top medical expenses for retirement.
The EBRI’s Retirement Security Projection Model, which uses more than a decade of empirical data from 401(k) participants and projects retirement readiness based off of income, plan types, and wealth, noted that some demographics, in general, have higher Retirement Savings Shortfalls (RSS) than others.
EBRI found that households had the lowest RSS, while those with the largest retirement income deficit were single females.
Among different age groups, Generation Xers—those currently in their mid-30s to mid-40s—had a higher RSS than older adults, due to rising health care costs that would be very pricey when they retire.
Retirement plans possessed by American adults face a collective shortfall of $4.55 trillion, or more than $47,000 per individual, the Employee Benefit Research Institute (EBRI) said in a study published this week.
The numerical amounts represent how much extra money a retiree would have to save or earn than they currently do in order to adequately pay for basic expenses and over-the-top medical expenses for retirement.
The EBRI’s Retirement Security Projection Model, which uses more than a decade of empirical data from 401(k) participants and projects retirement readiness based off of income, plan types, and wealth, noted that some demographics, in general, have higher Retirement Savings Shortfalls (RSS) than others.
EBRI found that households had the lowest RSS, while those with the largest retirement income deficit were single females.
Among different age groups, Generation Xers—those currently in their mid-30s to mid-40s—had a higher RSS than older adults, due to rising health care costs that would be very pricey when they retire.
Americans Aren’t Saving Enough for Retirement, Study Finds
economix.blogs.nytimes.com
The typical middle-age American is saving far too little for retirement, and the Employee Benefit Research Institute has estimated the shortfall: an average of $47,732 per individual over the course of that person’s retirement.
The number was intended to show how much additional income future retirees — in this case, people currently 36 to 62 — would need to sufficiently cover basic expenses and uninsured health care costs upon reaching retirement age. (Not all health care costs are covered by Medicare, after all.)
The retirement savings shortfall varies by gender, household size and generation, according to the model used by the institute, which is a nonpartisan research organization.
For example, Generation Xers — that is, people born from 1965 to 1974 — have a higher estimated retirement shortfall for any given household type. That is primarily because health care costs are rising so quickly, and will be especially expensive by the time that generation retires.
The costs of nursing home and home health care expenses increase the average retirement shortfall by $25,317 for married households (whose inhabitants can pool expenses). The shortfall for single men increases an average of $32,433, and for single women the average increase is $46,425.
The typical middle-age American is saving far too little for retirement, and the Employee Benefit Research Institute has estimated the shortfall: an average of $47,732 per individual over the course of that person’s retirement.
The number was intended to show how much additional income future retirees — in this case, people currently 36 to 62 — would need to sufficiently cover basic expenses and uninsured health care costs upon reaching retirement age. (Not all health care costs are covered by Medicare, after all.)
The retirement savings shortfall varies by gender, household size and generation, according to the model used by the institute, which is a nonpartisan research organization.
For example, Generation Xers — that is, people born from 1965 to 1974 — have a higher estimated retirement shortfall for any given household type. That is primarily because health care costs are rising so quickly, and will be especially expensive by the time that generation retires.
The costs of nursing home and home health care expenses increase the average retirement shortfall by $25,317 for married households (whose inhabitants can pool expenses). The shortfall for single men increases an average of $32,433, and for single women the average increase is $46,425.
Home Healthcare and Nursing-Home Costs Add to Retirement Burden
kiplinger.com
Already, the Employee Benefits Research Institute says, Americans are facing a severe retirement-savings shortfall - a situation that's made even direr when nursing-home and home healthcare costs are added to the mix.
The average savings shortfall for people between the ages of 36 and 62 is nearly $47,000. That estimate doesn't take into account the costs of nursing-home care or home-health services, however.
The average married couple would need to save $25,317 more to account for those expenses. Single people face an even greater burden: For single men, the shortfall is $32,433; for single women, it's $46,425.
Already, the Employee Benefits Research Institute says, Americans are facing a severe retirement-savings shortfall - a situation that's made even direr when nursing-home and home healthcare costs are added to the mix.
The average savings shortfall for people between the ages of 36 and 62 is nearly $47,000. That estimate doesn't take into account the costs of nursing-home care or home-health services, however.
The average married couple would need to save $25,317 more to account for those expenses. Single people face an even greater burden: For single men, the shortfall is $32,433; for single women, it's $46,425.
Americans face retirement savings deficits of nearly $48,000 per person, on average, nonprofit group finds
mcknights.com
A nonpartisan group estimates that the average retirement savings shortfall is $47,732 per person, or $4.6 trillion nationally.
Home-health care and nursing home costs can double both figures. Meanwhile, the elimination of Social Security benefits could drive those estimates to $89,000 per individual, or $8.5 trillion nationally, according to the Employee Benefit Research Institute. The institute used its own Retirement Security Projection Model to estimate the deficits at age 65 for three categories of workers: early boomers, late boomers and Generation Xers, according to ConsumerAffairs.com.
The totals vary by age, gender and marital status, but the values are based on 2010 dollars and for individuals who are 65. EBRI researchers said the numbers help individuals and care providers quantify the cost impact of home-health care and nursing homes on people in retirement.
A nonpartisan group estimates that the average retirement savings shortfall is $47,732 per person, or $4.6 trillion nationally.
Home-health care and nursing home costs can double both figures. Meanwhile, the elimination of Social Security benefits could drive those estimates to $89,000 per individual, or $8.5 trillion nationally, according to the Employee Benefit Research Institute. The institute used its own Retirement Security Projection Model to estimate the deficits at age 65 for three categories of workers: early boomers, late boomers and Generation Xers, according to ConsumerAffairs.com.
The totals vary by age, gender and marital status, but the values are based on 2010 dollars and for individuals who are 65. EBRI researchers said the numbers help individuals and care providers quantify the cost impact of home-health care and nursing homes on people in retirement.
Retirement income deficit would double without Social Security benefits, EBRI finds
CCH
The total aggregate national deficit in U.S. retirement income adequacy is an estimated $4.6 trillion—or about an average of $48,000 per individual, according to congressional testimony by the nonpartisan Employee Benefit Research Institute (EBRI). Reflecting the importance of Social Security, EBRI's analysis finds that if Social Security retirement benefits were eliminated, the aggregate retirement income deficit would almost double—to $8.5 trillion, or an individual average of approximately $89,000.
The estimates are present values (stated in 2010 dollars) at age 65, and represent the additional individual average amount needed at age 65 to eliminate expected deficits in retirement. EBRI notes this aggregate deficit assumed that Americans will receive current-law Social Security benefits.
"These numbers show that the national retirement income deficit—which is already quite large—would almost double without current-level Social Security benefits," said Jack VanDerhei, EBRI research director, testifying at a hearing by the Senate Committee on Health, Education, Labor and Pensions. His full testimony is on EBRI’s website.
The total aggregate national deficit in U.S. retirement income adequacy is an estimated $4.6 trillion—or about an average of $48,000 per individual, according to congressional testimony by the nonpartisan Employee Benefit Research Institute (EBRI). Reflecting the importance of Social Security, EBRI's analysis finds that if Social Security retirement benefits were eliminated, the aggregate retirement income deficit would almost double—to $8.5 trillion, or an individual average of approximately $89,000.
The estimates are present values (stated in 2010 dollars) at age 65, and represent the additional individual average amount needed at age 65 to eliminate expected deficits in retirement. EBRI notes this aggregate deficit assumed that Americans will receive current-law Social Security benefits.
"These numbers show that the national retirement income deficit—which is already quite large—would almost double without current-level Social Security benefits," said Jack VanDerhei, EBRI research director, testifying at a hearing by the Senate Committee on Health, Education, Labor and Pensions. His full testimony is on EBRI’s website.
Tuesday, October 12, 2010
Retirement 'Deficit' Measured in Trillions
thestreet
The financial gap between what Americans need for retirement and what they have is $4.6 trillion as a national aggregate and an average $48,000 per person, according to congressional testimony by the Employee Benefit Research Institute.
Jack VanDerhei, EBRI's research director, was among those testifying at a hearing Thursday, The Wobbly Stool: Retirement (In)security in America, convened by the Senate Committee on Health, Education and Labor. Testimony and video of the hearing on U.S. retirement income adequacy is available online.
The financial gap between what Americans need for retirement and what they have is $4.6 trillion as a national aggregate and an average $48,000 per person, according to congressional testimony by the Employee Benefit Research Institute.
Jack VanDerhei, EBRI's research director, was among those testifying at a hearing Thursday, The Wobbly Stool: Retirement (In)security in America, convened by the Senate Committee on Health, Education and Labor. Testimony and video of the hearing on U.S. retirement income adequacy is available online.
EBRI is a research institute based in Washington, D.C., that focuses on retirement and economic security issues. Its analysis estimates how much money will be needed for "basic" expenses (such as food and shelter) and uninsured health care costs in retirement, and what financial resources retirees are likely to have.
The deficit projection assumes no changes to the current Social Security benefit structure. If Social Security benefits were to be eliminated, the aggregate deficit would jump to $8.5 trillion and the average amount would increase to about $89,000.
Friday, October 8, 2010
The National Retirement Income Adequacy Deficit: $4.6 Trillion
The total aggregate national deficit in U.S. retirement income adequacy is an estimated $4.6 trillion—or about $48,000 per-individual average, according to congressional testimony by the nonpartisan Employee Benefit Research Institute (EBRI).
Reflecting the importance of Social Security, the EBRI analysis finds that if Social Security retirement benefits were eliminated, the aggregate retirement income deficit would almost double, to $8.5 trillion, or an individual average of approximately $89,000.
"These numbers show that the national retirement income deficit—which is already quite large—would almost double without current-level Social Security benefits,” said Jack VanDerhei, EBRI research director, testifying at a hearing Oct. 7 by the Senate Committee on Health, Education, Labor and Pensions. The Senate HELP Committee’s website for the hearing is online here.
America's $4.6 trillion retirement hole
money.cnn.com
On average, U.S. workers would need to have an additional $48,000 when they retire at 65 to ensure they don't run shy of cash in retirement, the Employee Benefit Research Institute said.
All told, the group estimates that the national retirement deficit is $4.6 trillion.
The research group estimated how much money retirees will need for "basic" expenses such as food, shelter and uninsured health care costs. It compared those expenses to the financial resources workers are likely to have at the typical retirement age, including Social Security, pensions and savings plans such as 401(k)s.
If Social Security benefits are deducted, the group estimates that the national retirement deficit would jump to $8.5 trillion, or about $89,000 for the average worker.
In all cases, low-income workers are most at risk of not having enough savings to retire on, Jack VanDerhei, research director at EBRI, told lawmakers Thursday. EBRI estimates that 41% of low-income Baby Boomers will run short of money within 10 years of retirement.
However, he noted that the number of households that are projected to have inadequate retirement income has declined since the last time EBRI studied the topic in 2003.
VanDerhei said the improvement over the last seven years is largely due to an increase in the number of employers that automatically enroll workers in 401(k) plans.
Automatic enrollment, which allows workers to opt out, can increase participation in retirement savings plans dramatically, he said, particularly among lower-income employees.
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