recommended category percentage of household retirement budget

households would have increased by more than 200 percent to 11 million households. The analysis also finds that without income from Social Security in 2013, the number of poor older U.S.

Register here for a webinar scheduled for Wednesday, Januat 2:00 PM ET. Frank Porell, University of Massachusetts Boston professor emeritus.ĭownload the report here. The report is co-authored by Tyler Bond, NIRS manager of research, and Dr. These findings are contained in a new report from the National Institute on Retirement Security (NIRS), Examining the Nest Egg: The Sources of Retirement Income for Older Americans. In fact, the analysis indicates that if Social Security income had been ten percent greater in 2013, there would have been about 500,000 fewer older households in poverty. Most financial planners recommend at least a 70 percent income replacement rate for retirees, while others say this should be even higher given longer lifespans and rising health costs. Typically, benefits from Social Security replace approximately 40 percent of pre-retirement income. Social Security alone is not considered sufficient for a secure retirement, and it was not intended to stand alone. Retirees with these three sources of income are far less likely to face poverty and economic hardship.Ī new report also finds that a large portion (40 percent) of older Americans rely only on Social Security income in retirement. Retirement income from these three sources is widely considered to be the ideal situation to ensure retirement security, particularly for the middle class. WASHINGTON, D.C., Janu– Only a small percentage of older Americans, seven percent, receive income from Social Security, a defined benefit pension, and a defined contribution account. Only 7% of Retirees Have Ideal Situation of Income from Three Sources: Social Security, a Pension and Savings Social Security Kept More Than 7.5 Million Households Out of Poverty, Reduced Public Assistance Costs by $10 billion in 2013 Pensions Kept Nearly One Million Retirees Out of Poverty, Reduced Public Assistance Costs by $4 Billion in 2013

Recommended category percentage of household retirement budget