Tag: replacement
Introduction 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 sing…
Abstract This paper estimates how much people actually receive in retirement relative to earnings before retirement when all sources of income, including income generated by homeownership, are combined. Previous studies find that middle class people need between 70 and 75 percent of their pre-retirement earnings to maintain their life style once they stop working. T…
