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Article: Health-care costs drive up the National Retirement Risk Index; 44% couldn't maintain their standard of living even if they retired at 65.(Special Report: Retirement Income)(Reprint)
- Article from:
- Investment News
- Article date:
- March 24, 2008
CopyrightCOPYRIGHT 2008 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: A. H. Munnell, M. Soto, A. Webb, F. Golub-Sass and Dan Muldoon
The National Retirement Risk Index has shown that even if heads of households work to age 65 and annuitize all their financial assets, including the receipts from reverse mortgages on their homes, 44% will be "at risk" of being unable to maintain their standard of living in retirement. More realistic assumptions regarding earlier retirement and reluctance to annuitize 401(k) balances or tap housing equity would put the percentage "at risk" even higher. But these previous analyses have not addressed rapidly rising health-care costs. When these costs are included explicitly, the percentage of ...