Do Newly Retired Workers in the United States Have Sufficient Resources to Maintain Well-Being?

A current policy issue is the extent to which savings are sufficient to sustain economic well-being in retirement. We compare annualized wealth at retirement to three preretirement consumption estimates. About one-half of new retirees have insufficient resources to enable the full maintenance of est...

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Published in:Economic Inquiry Vol. 44; no. 2; pp. 249 - 265
Main Authors: Haveman, Robert, Holden, Karen, Wolfe, Barbara
Format: Article
Published: Wiley-Blackwell April 2006
Subjects:
Online Access:View this record in EBSCOhost
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          Haveman, Robert
          Holden, Karen
          Wolfe, Barbara
      su:
        Retirement & economics
        Consumption (Economics)
        United States
      sug:
        subj:
          United States
          Retirement & economics
          Consumption (Economics)
      ab: A current policy issue is the extent to which savings are sufficient to sustain economic well-being in retirement. We compare annualized wealth at retirement to three preretirement consumption estimates. About one-half of new retirees have insufficient resources to enable the full maintenance of estimated preretirement consumption in retirement, and about 40% fail to meet the “0.7 of earnings” standard that is used in many studies. Using standards reflecting social (poverty) norms we find a less serious problem. About 5% (25%) of new retirees have insufficient resources to enable an above-poverty (near-poverty) level of living during retirement. (JEL J14, J26) Reprinted by permission of the publisher.
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    language: English
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