It's All Relative: Understanding the Retirement Prospects of Baby-Boomers

Butrica, Barbara A.; Iams, Howard M.; Smith, Karen E.

doi:10.2139/ssrn.555826

Cited by 29 publications

(27 citation statements)

References 19 publications

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“…As Butrica, Iams, and Smith (2003) and Butrica and Uccello (2004) have already documented, despite having higher retirement incomes, boomers are less likely than current retirees to be able to maintain their pre-retirement living standards. That is, boomers are projected to have lower replacement rates than current retirees.…”

Section: Replacement Ratesmentioning

confidence: 93%

“…At baseline, age 67, the characteristics of retirees are projected to differ across birth cohorts in ways that are well documented (Butrica, Iams, and Smith 2003;Butrica and Uccello 2004). Boomer retirees are significantly less likely than current retirees to be non-Hispanic white and high-school dropouts, and significantly more likely to have college degrees and many years of work experience (table 1).…”

Section: Characteristics Of Older Adults At Ages 67 and 80mentioning

confidence: 99%

“…Many of them suggest that most current retirees are doing well (Gustman and Steinmeier 1999;Haveman et al 2003) and future retirees are likely to receive at least as much income as previous generations (Butrica and Uccello 2004;Butrica, Iams, and Smith 2003;Smith 2002). These studies have generally focused on outcomes at relatively young retirement ages.…”

Section: Previous Literaturementioning

confidence: 99%

“…In many cases, however, the context for evaluating retirement preparedness is at retirement-a point in time-rather than throughout retirement-which may be years or even decades. That is, most studies of retirement well-being have focused on outcomes at relatively young ages (Butrica, Iams, and Smith 2003;Butrica and Uccello 2004;Moore and Mitchell 2000;Gustman and Steinmeier 1999). Few studies have considered how economic security changes as retirees grow older.…”

Section: Introductionmentioning

confidence: 99%

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How Economic Security Changes During Retirement

Butrica

2007

SSRN Journal

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Most studies of retirement well-being have focused on outcomes for relatively young retirees. Few studies have considered how retirement security changes as older Americans age. Following older adults from age 67 (when most have stopped working) to age 80, this study uses projections of wealth and income to assess how their economic security changes during retirement. Results indicate that typical older adults experience a decline in retirement wealth and income between ages 67 and 80. More than two-fifths of retirees will have significantly less income at age 80 than they did at age 67, with the median decline in income being $16,000 for current retirees and $23,000 for boomers.Some older adults, however, will be better off later in retirement. Approximately twofifths of retirees will have significantly more income at age 80 than they did at age 67, with the median increase in income being $14,000 for current retirees and $17,000 for boomers. At least some of the change in economic well-being during retirement is related to changes in marital status, health status, living arrangements, and work status.

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Section: Replacement Ratesmentioning

confidence: 93%

Section: Characteristics Of Older Adults At Ages 67 and 80mentioning

confidence: 99%

Section: Previous Literaturementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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How Economic Security Changes During Retirement

Butrica

2007

SSRN Journal

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“…Butrica, Iams and Smith (2003), for example, estimate that incomes among top quintile retirees in the U.S., currently about eight times those of the bottom quintile, will rise to ten times those of the bottom quintile when the baby boom retires -simply as a result of greater earnings inequality. Among current U.S. retirees, the income of high school dropouts is 68 percent of the mean of their age cohort.…”

Section: The Changing Life Coursementioning

confidence: 99%

Sustainable and Equitable Retirement in a Life Course Perspective

Esping‐Andersen

Myles

2006

Oxford Handbooks Online

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We argue that long term sustainability of social security systems requires not only a better equilibrium between the proportion in retirement and in employment but also an equitable distribution of the additional financial burden that aging inevitably will requires. We examine how a proportional fixed ratios model of burden sharing between the aged and non-aged will establish inter-generational equity. Additionally we address the question of intra-generational equity and argue that the positive association between lifetime income and longevity requires more progressive financing of pensions and of care for the elderly.

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The role of earnings and financial risk in distributional analyses of Social Security reform measures

Hungerford¹

2006

J Policy Anal Manage

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The Social Security Trustees project that the Social Security program faces longterm financing difficulties. Several proposals that have been offered to shore-up the finances of the Social Security program would create individual retirement accounts funded with part of the payroll tax. The authors of many of these proposals claim that future beneficiaries will be better off under their new system than under the current system. This study examines the consequences of differing earnings patterns and year-to-year differences in asset returns have for Social Security retired worker benefits in three Social Security reform proposals. Incorporating both actual earnings histories and variation in asset returns shows that none of the three individual account plans can always deliver benefits that are higher than payable current-law benefits. © 2006 by the Association for Public Policy Analysis and Management

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It's All Relative: Understanding the Retirement Prospects of Baby-Boomers

Cited by 29 publications

References 19 publications

How Economic Security Changes During Retirement

How Economic Security Changes During Retirement

Sustainable and Equitable Retirement in a Life Course Perspective

The role of earnings and financial risk in distributional analyses of Social Security reform measures

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