Americans' Future Retirement Security: Implications of the Ebri-Erf Retirement Security Projection Model
16 Pages Posted: 25 Feb 2004
Abstract
The United States faces the growing societal problem of a dramatic increase in the proportion of retirees relative to workers, and of how to finance their care, due to such well-documented demographic trends as the largest generation (the baby-boomers) nearing retirement, longer average lifespans, and far greater time spent in retirement.
According to a recent EBRI analysis done in collaboration with the Milbank Memorial Fund, the total annual national retirement income shortfall will grow to as much as $57 billion by 2030, an increase of approximately $25 billion from its projected level in 2005. During the decade ending in 2030, the aggregate retiree income shortfall could exceed $500 billion.
This paper briefly summarizes the initial results from the national version of the Retirement Security Projection Model (reported in greater detail in the November 2003 EBRI Issue Brief), and provides analysis and comments on the implications of these findings from numerous professionals with policy expertise on the issues involved.
Keywords: Income replacement rate, Postretirement expenditures, Retirement income, Retirement planning, Savings
JEL Classification: D31, D91, J14
Suggested Citation: Suggested Citation