The study conducted by Ernst & Young LLP examined the retirement savings and other resources for Americans with $50,000 to $100,000 of preretirement income. A couple with preretirement earnings of $75,000 that will have a pension has a 31 percent chance of outliving their assets. That couple without a pension has a 90 percent chance of outliving assets.
The study confirms what Alicia Munnell, director of the Center for Retirement Research at Boston College, has been warning for years - that a smaller role for Social Security benefits, rising Medicare premiums, and disappearing pensions will make the retirement of younger workers far more difficult than those of current and past
Monday, September 8, 2008
Defined-benefit pension is a huge contributor to financial security in retirement
A recent study concludes that households with a defined-benefit pension as well as Social Security and savings are far less likely to outlive their savings than households without a defined-benefit pension.