Are future retirees on track to have sufficient resources to retire comfortably? Some studies suggest that there is a retirement crisis, and others conclude that the U.S. retirement system is healthy. The truth is somewhere in between. This article summarizes recent research studies on retirement adequacy and explains the differences in research objectives, empirical methodology, and model assumptions that have led to divergent conclusions.
Author: Vickie L. Bajtelsmit, PhD, JD, is a professor in the department of Finance and Real Estate at Colorado State University, where she has taught insurance and financial planning classes since 1991. She is also the director of the Master of Finance program at CSU. Her educational background includes a PhD in insurance and risk management from the University of Pennsylvania’s Wharton School of Business and a JD from Rutgers University School of Law. In addition to her textbook Personal Finance (Wiley 2017), she has authored many academic and professional articles on retirement and insurance topics. She previously served as the president of the American Risk and Insurance Association (2010), president of the Risk Theory Society (2010), and president of the Academy of Financial Services (2004).
Author: Anna Rappaport, FSA, MAAA, is an actuary, consultant, author, speaker, and nationally and internationally recognized expert on the impact of change on retirement systems and workforce issues. Anna is a past president of the Society of Actuaries and chairs its Committee on Post-Retirement Needs and Risks. She is a phased retiree and formed Anna Rappaport Consulting in 2005 after retiring from Mercer Human Resource Consulting at the end of 2004 after 28 years with the firm.