A new report on the financial assets of older Americans highlights the need for many people to save more money to avoid running short in retirement.
Between 2010 and 2012, more than a fifth of the Americans who died at age 85 or above had exhausted their non-housing assets, according to the report from the Employee Benefit Research Institute (EBRI). Slightly more than 12 percent had no assets at all left.
Nor were severe financial strains limited to people in their 80s and 90s. The study found that nearly 30 percent of households that lost a member between ages 50 and 64 had no assets left.
The importance of Social Security to older households “cannot be overstated,” the report says. Among recently deceased singles, for example, Social Security had been providing at least two-thirds of their household incomes.
As companies have moved away from defined benefit pension plans and U.S. life expectancy has increased, it has become even more important for Americans to save adequately for retirement. In addition, Washington must reform Social Security to ensure its long-term solvency.
External links:
A Look at the End-of-Life Financial Situation (EBRI)
Rising Life Expectancy Means Higher Retirement Costs (Concord)
Workers Should Be Realistic in Retirement Planning (Concord)
