Munnell, Alicia Haydock. “Falling short”. Issue in Brief 15-7, Chestnut Hill, Mass.: Center for Retirement Research at Boston College, April 2015. http://hdl.handle.net/2345/bc-ir:104213.
Abstract
The brief's key findings are: (1) Today's workers face a brewing retirement crisis due to: (a) a growing need for income driven by longer lifespans, rising health costs, and low interest rates; and (b) reduced support from Social Security and defined benefit pension plans. (2) Fortunately, the solutions are at hand: (a) Policymakers should shore up Social Security with more revenue, make 401(k)s fully automatic, and ensure everyone has access to a savings plan. (b) Individuals should work longer – to age 70 if possible – and consider tapping their home equity in retirement to support day-to-day needs. (3) Any delay in responding to the challenge will only make adjustments more painful down the road.