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How Do Pensions Affect Replacement Rates?

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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. This brief is the second in a series examining replacement rates for current retirees. The first one looked solely at Social Security, the single most important source of retirement income. This brief adds employer-sponsored pensions and household saving outside of employer plans to provide a more comprehensive picture of replacement rates. A final brief will consider how the addition of housing equity may affect replacement rates.

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File URL: http://crr.bc.edu/images/stories/Briefs/ib_37.pdf
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Publisher Info
Paper provided by Center for Retirement Research in its series Issues in Brief with number ib2005-37.

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Length: 6 pages
Date of creation: Nov 2005
Date of revision: Nov 2005
Handle: RePEc:crr:issbrf:ib2005-37

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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. 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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  2. Alicia H. Munnell & Mauricio Soto, 2005. "How Much Pre-Retirement Income Does Social Security Replace?," Issues in Brief ib2005-36, Center for Retirement Research, revised Nov 2005. [Downloadable!]
  3. Michael Hurd & Susann Rohwedder, 2004. "The Retirement-Consumption Puzzle: Anticipated and Actual Declines in Spending at Retirement," Working Papers wp069, University of Michigan, Michigan Retirement Research Center. [Downloadable!]
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This page was last updated on 2009-11-14.


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