How Do Disabilities Affect Future Retirement Benefits? (Series/Older Americans' Economic Security)Richard W. Johnson,
Gordon MerminOne-quarter of workers ages 51 to 55 develop work disabilities before age 62. Disabilities often force people to curtail their work hours, derailing retirement preparations. However, protections built into Social Security, including disability and spouse benefits and the system's tilt toward workers with low lifetime earnings, cushion the impact of midlife health problems. After other factors are controlled for, the onset of health-related work limitations between ages 51 and 61 reduces Social Security retirement benefits at ages 63 to 67 by only about 2 percent, much less than the impact on other retirement savings.
| Posted: October 23, 2008 | Availability: HTML | PDF |
How Is the Economic Turmoil Affecting Older Americans? (Fact Sheet / Data at a Glance)Richard W. Johnson,
Mauricio Soto,
Sheila R. ZedlewskiThe slumping stock market, falling housing prices, and weakening economy have serious repercussions for older Americans who are approaching retirement or already retired. Seniors have little time to recoup the values of their homes, 401(k) plans, and individual retirement accounts-all important parts of their retirement nest eggs. More and more older adults are working to bolster their retirement incomes, but the rising unemployment rate limits their prospects. This fact sheet examines the impact of the ongoing economic turmoil on retirement savings, home values, and retirement decisions.
| Posted: October 07, 2008 | Availability: HTML | PDF |
How Much Could Reverse Mortgages Contribute to Retirement Incomes? (Policy Briefs/Retirement Project Brief Series)Sheila R. Zedlewski,
Brendan Cushing-Daniels,
Eric LewisRetirees who want to stay in their homes can tap into home equity through a reverse annuity mortgage that pays them a tax-free monthly payment. We show that conversion of home equity into a reliable income stream could provide a significant boost in retirement income, particularly for low-income homeowners with significant equity. The cost of initiating a RAM, however, and many older adults' concerns about borrowing against this asset have limited interest in RAMs. Recent turmoil in the mortgage market and declines in home prices raise additional uncertainties about the potential for using home equity to boost retirement incomes.
| Posted: October 06, 2008 | Availability: HTML | PDF |
Are Low-Wage Workers Destined for Low Income at Retirement? (Series/Older Americans' Economic Security)Barbara Butrica,
Eric ToderLow-wage workers find it difficult to save for retirement. Without savings, they will have to rely on Social Security and pensions. Yet these income sources are based on earnings, which means that low-wage workers will have lower Social Security and pension benefits than higher-wage workers. This brief assesses whether boomers with low earnings between ages 22 and 62 are destined for low income at age 67. We find that nearly two-thirds of this group will end up with low income at retirement, but more than one-third will manage to defy the odds and escape being among the lowest-income older Americans.
| Posted: September 26, 2008 | Availability: HTML | PDF |
Boomers at the Bottom: How Will Low Income Boomers Cope with Retirement (Research Report)Barbara Butrica,
Eric Toder,
Desmond TooheyThis study uses the Urban Institute's DYNASIM model to project wealth and income at retirement for low-income boomers. The findings suggest that most with low lifetime earnings will also have low incomes at older ages unless they either continue working or move in with others who help support them financially. Saving more, working more consistently over their lifetime, and delaying retirement is projected to improve outcomes for low-earning boomers, but none of these actions will increase retirement living standards dramatically.
| Posted: September 16, 2008 | Availability: HTML | PDF |
