Assessing adequacy of retirement income for U.S. households: A replacement ratio approach

Research output: Contribution to journalArticlepeer-review

10 Scopus citations

Abstract

The retirement income replacement ratio is projected using the Federal Reserve's Survey of Consumer Finances. On the basis of lognormal portfolio projections and current portfolio allocation, at least 44 per cent of pre-retired households will not be able to maintain 70 per cent of permanent income standard in retirement. Households planning to retire later and taking a high financial risk in savings and investments have a higher projected replacement ratio. Households having a high proportion of non-housing assets held in equity or bonds have a higher projected replacement ratio than those having a high proportion in cash equivalents.

Original languageEnglish
Pages (from-to)304-323
Number of pages20
JournalGeneva Papers on Risk and Insurance: Issues and Practice
Volume36
Issue number2
DOIs
StatePublished - Apr 2011

Keywords

  • lognormal forecasting model
  • Replacement ratio
  • retirement income adequacy
  • retirement planning

Fingerprint

Dive into the research topics of 'Assessing adequacy of retirement income for U.S. households: A replacement ratio approach'. Together they form a unique fingerprint.

Cite this