A Post-Crisis Assessment of Retirement Income Adequacy for Baby Boomers and Gen Xers

Depending largely on age and income, between 4 percent and 14 percent of Americans who otherwise would have had adequate income to cover basic expenses in retirement became “at risk” of running short because of the housing and financial crisis of 2008–2009, according to a new report by the nonpartisan Employee Benefit Research Institute (EBRI).

The EBRI analysis, based on its retirement income adequacy models, notes that the likelihood of becoming “at risk” because of the economic crisis depends to a large extent on the size of the retirement account balances the household had in 401(k)-type plans and/or individual retirement accounts, as well as their relative exposure to fluctuations in the housing market.  The resulting percentages of households that would not have been “at risk” without the 2008/2009 crisis that ended up “at risk” vary from a low of 3.8 percent to a high of 14.3 percent, EBRI found.

The full report appears in the February 2011 EBRI Issue Brief, “A Post-Crisis Assessment of Retirement Income Adequacy for Baby Boomers and Generation Xers,” online at www.ebri.org

The press release is online here. The full report is online here.

Media Coverage:

U.S. News & World Report

LA Times

About ebriorg
President and CEO, EBRI

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