| Sumario: | A study was conducted to determine how much Americans should be saving for retirement. Data were drawn from the 1992 Health and Retirement Survey, which includes 12,652 participants aged 51-61 and their families. The Economic Security Planner or ESPlanner, a new financial-planning software package, was used to estimate how much households approaching retirement should save to accomplish certain objectives. Findings show that the ESPlanner recommended reasonably high saving rates for all but the poorest households. Moreover, the possibility of major cuts in Social Security benefits means that households need to save at much higher rates than would otherwise have been the case.
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