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How Much Pre-Retirement Income Does Social Security Replace?

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Author Info
Alicia H. Munnell
Mauricio Soto

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Abstract

Do today's retirees have sufficient income to meet their needs? One common way to address this question is to determine a household's "replacement rate." The replacement rate gauges the extent to which retirement income allows workers to maintain their pre-retirement standard of living. In the U.S. retirement income system, Social Security is the single most important source for most people. It provides a basic level of replacement, upon which individuals can build through additional saving. This brief addresses the question of how much pre-retirement income Social Security replaces for current recipients. Subsequent briefs will provide a more comprehensive evaluation of replacement rates by including income from employer-sponsored pensions, other savings, and housing equity, as well as Social Security...

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File URL: http://crr.bc.edu/images/stories/Briefs/ib_36.pdf
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Publisher Info
Paper provided by Center for Retirement Research in its series Issues in Brief with number ib2005-36.

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Length: 7 pages
Date of creation: Nov 2005
Date of revision: Nov 2005
Handle: RePEc:crr:issbrf:ib2005-36

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References listed on IDEAS
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  1. Banks, James & Blundell, Richard & Tanner, Sarah, 1998. "Is There a Retirement-Savings Puzzle?," American Economic Review, American Economic Association, vol. 88(4), pages 769-88, September. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Alicia H. Munnell & Mauricio Soto, 2005. "The House and Living Standards in Retirement," Issues in Brief ib2005-39, Center for Retirement Research, revised Dec 2005. [Downloadable!]
  2. Alicia H. Munnell & Mauricio Soto, 2005. "How Do Pensions Affect Replacement Rates?," Issues in Brief ib2005-37, Center for Retirement Research, revised Nov 2005. [Downloadable!]
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This page was last updated on 2009-11-14.


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