The study starts with an assumed target “replacement rate” that represents the fraction of pre-retirement income that an individual will be likely to need to maintain their lifestyle in retirement. A long-term project at Georgia State to estimate required replacement rates provides the numbers that serve as the foundation of the CRR paper. The Georgia State research suggests Continue reading →
Social Security is a hot topic in the economic and political landscape these days. Many reports indicate that Social Security’s finances are getting worse as the economy continues to struggle and as the “Baby Boomer” generation begin to retire. To add to the confusion, Texas Governor Rick Perry is standing by his assertion that Social Security is a Ponzi scheme—a fraud being perpetuated on today’s young people by old people. While I’m not sure this is necessarily true, I recently came across a fascinating history of the Social Security program that will help us understand how we got to where we are in the first place.
A study released July 13 has found that nearly half of early Baby Boomers – those 56 to 62 – may not having sufficient income to pay for basic retirement expenditures and uninsured medical expenses. “Generation X” is similarly poorly positioned. Continue reading →