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Summary | 5 Annotations
Americans, have no fear — the future of retirement may not be as bleak as you fear.
2019/07/24 15:09
The gender gap in Social Security benefits will narrow, women’s increased lifetime earnings will bolster how much money they get in retirement and retirement incomes in general will continue to rise, according to the Urban Institute, a Washington, D.C.-based think tank for economic and social policy research. “What struck me most was the realization that the sky is not falling for retirement security,” said Richard Johnson, an economist at the Urban Institute.
2019/07/24 15:09
The Urban Institute measured numerous factors in retirement income, including Social Security, earnings, pensions, government benefits, and retirement account withdrawals.
2019/07/24 15:09
The caveat: Social Security must remain completely intact. Right now the trust funds supporting the program are facing depletion by 2035, and if that occurs, retirees will see only 80% of the benefits their owed, according to the Social Security Administration’s trustees report released earlier this year. Should Social Security see this shortfall, 38% of Generation X and 40% of Xennials won’t be able to replace at least 75% of their preretirement income.
2019/07/24 15:09
The gender gap in earnings has yet to close — or come close — but the gap in Social Security benefits is lessening. This gap is expected to fall from 37% for pre-boomers to 15% for Xennials. Xennial women may see a median of $22,000 in annual Social Security income at age 70 (versus the men’s $26,000), compared with pre-boomer women, who had an annual Social Security benefit of $13,100 (compared with pre-boomer men’s median of $20,800).
2019/07/24 15:09