Advanced Search
MyIDEAS: Login

Do Households Have a Good Sense of Their Retirement Preparedness?

Contents:

Author Info

  • Alicia H. Munnell,
  • Francesca Golub-Sass
  • Mauricio Soto
  • Anthony Webb

Abstract

The National Retirement Risk Index (NRRI) measures the percentage of working-age households who are ‘at risk’ of being financially unprepared for retirement today and in coming decades. The calculations show that even if households work to age 65 and annuitize all their financial assets, including the receipts from reverse mortgages on their homes, 44 percent will be ‘at risk’ of being unable to maintain their standard of living in retirement. An extension of the analysis to account explicitly for health care costs in retirement raises the share of ‘at risk’ households from 44 percent to 61 percent. This brief examines whether households have a good sense of their own retirement preparedness — do their retirement expectations match the reality that they face? Do people ‘at risk’ know that they are ‘at risk?’ The first section summarizes the NRRI and compares households’ self-assessed preparedness to the objective measure provided by the NRRI. The second section describes the characteristics of households associated with being too optimistic or too pessimistic. The last section of this brief introduces health care costs into the analysis.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://crr.bc.edu/briefs/do-households-have-a-good-sense-of-their-retirement-preparedness/
Download Restriction: no

Bibliographic Info

Paper provided by Center for Retirement Research in its series Issues in Brief with number ib2008-8-11.

as in new window
Length: 9 pages
Date of creation: Aug 2008
Date of revision: Aug 2008
Handle: RePEc:crr:issbrf:ib2008-8-11

Contact details of provider:
Postal: Hovey House, 140 Commonwealth Avenue, Chestnut Hill, MA 02467
Phone: (617) 552-1762
Fax: (617) 552-0191
Email:
Web page: http://crr.bc.edu/
More information through EDIRC

Related research

Keywords:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
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.:
as in new window
  1. Lusardi, Annamaria & Mitchell, Olivia S., 2006. "Baby boomer retirement security: The roles of planning, financial literacy, and Housing wealth," CFS Working Paper Series 2006/20, Center for Financial Studies (CFS).
  2. Alicia H. Munnell & Mauricio Soto & Anthony Webb & Francesca Golub-Sass & Dan Muldoon, 2008. "Health Care Costs Drive Up the National Retirement Risk Index," Issues in Brief ib2008-8-3, Center for Retirement Research, revised Mar 2008.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:crr:issbrf:ib2008-8-11. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Amy Grzybowski) or (Christopher F Baum).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.