How Will Recent Patterns of Earnings Inequality Affect Future Retirement Incomes?

Research Report

How Will Recent Patterns of Earnings Inequality Affect Future Retirement Incomes?

March 15, 2003

Abstract

Over the past three decades, the distribution of family income has become increasingly less equal. Thus, it seems reasonable to infer that retirement income inequality of future retirees also will increase. In this AARP Public Policy Institute Issue Paper, Karen Smith of the Urban Institute uses the Dynamic Simulation Income Model (DYNASIM3) to analyze the impact of recent patterns of rising earnings inequality on the retirement incomes of aged cohorts over the next four decades.

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