Future Retirees' Financial Security at Risk
While most of today’s retirees are financially stable, future retirees face an uncertain future, finds a new study from the Center for Retirement Research at Boston College. According to a brief, changes in the retirement landscape will make it more difficult for future retirees to maintain their standard of living.
Future retirees will likely have to rely on income drawn from assets accumulated over their working careers, which is largely due to the shift from traditional employer pensions to 401(k)s. The overall level of retirement income is declining and Social Security will replace a smaller share of earnings at any given claiming age.
The report says the best ways for future retirees to secure their retirement is to increase their retirement income and reduce their fixed expenses, by working longer, annuitizing wealth, taking out a reverse mortgage, and downsizing.