A research brief is sometimes accompanied with graphics and charts to emphasize key points.
The Center puts their research ‘briefs’ into useful perspective.
It is an institution doing excellent research into the retirement issues of today.
Our friends at the Center for Retirement Research have again come up with an excellent piece of research about how current retirees are coping with their financial obligations.
The research brief is titled: WILL THE FINANCIAL FRAGILITY OF RETIREES INCREASE? By Steven A. Sass. (February, 2018)
While the picture is not ‘rosy’ for current retirees, the bottom line is that current retirees are coping better than future retirees will be able to cope. “While most of today’s elderly seem able to withstand shocks, changes in the retirement landscape suggest that future retirees will face more difficulty…”
About 80% of a retiree’s income is spent on basics such as food, healthcare, housing. The biggest jump in expenditure for those over 75 is in healthcare.
There is an excellent graphic/table in the full pdf. format of the 6 page research brief/article that shows the percentile changes between the over and under 75 age groups of retirees.
The article notes that: “The two major shocks that hit the elderly today are a spike in medical expenses and a sharp drop in income upon becoming a widow.” And …”The study found that health declines were a clear predictor of (financial) hardship.”
There will be, for future retirees, a growing reliance on savings versus the social security system and retirement plans. – called “the drawdown challenge”.
One conclusion of the research: “Downsizing is the most effective way to reduce fixed expenses and could also increase the household’s financial assets.”
I recommend the 6 pages of the research brief/article to those who are concerned with what the future retiree landscape will look like.
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