Research Report Preparing for Retirement Reforms
Potential Consequences for Saving, Work, and Retirement Plans
Karen E. Smith, C. Eugene Steuerle, Damir Cosic
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This study uses the Urban Institute’s Dynamic Simulation of Income Model to project the share of Social Security beneficiaries whose retirement incomes fall below 75 percent of preretirement income, a common benchmark for a secure retirement. Absent significant Social Security reforms, we project the share of beneficiaries with inadequate retirement income will rise from 26 to 45 percent between 2020 and 2090. We show that working longer, saving more, and adding well-targeted minimum benefits to a bipartisan Social Security reform proposal could increase the share of beneficiaries with adequate retirement income by 19 percentage points, eliminate poverty at older ages, increase overall retirement incomes, and bolster government finances.

Research Areas Economic mobility and inequality Wealth and financial well-being Aging and retirement Families Social safety net Taxes and budgets
Tags Economic well-being Asset and debts Employment and income data Retirement Labor force Social Security Financial stability
Policy Centers Income and Benefits Policy Center