Stories in the popular press suggest – particularly in the wake of the bankruptcy of Detroit – that pensions are the major expense of American cities and will lead to their widespread collapse.1 Thus, it is important to know the burden of pensions on cities. This burden can be measured in...

The brief’s key findings are: *Labor force activity among older Americans began rising in the mid-1980s due to: *changing Social Security incentives; the shift to 401(k) plans; and *improving health, longevity, and education. *Updated data, however, suggest that these factors may have played...

The brief’s key findings are: *Federal Reserve data show that retirement preparedness has been declining over time, but studies on the level of preparedness offer conflicting assessments. *The National Retirement Risk Index (NRRI) finds half of households are “at risk,” while studies of...

The brief’s key findings are: *As 401(k)s and IRAs have become the dominant source of retirement saving, the potential for pre-retirement withdrawals – “leakages” – has grown. *Leakages occur via three channels: 1) in-service withdrawals for hardships or after age 59½; 2) cashouts...

The brief’s key findings are: Rising life expectancy makes defined benefit pension plans more expensive. The question is the extent to which state and local plans have already incorporated rising life expectancy into their cost estimates. *The analysis explores how plan liabilities and funded...

The conventional wisdom says that older workers are less likely to be displaced than younger workers. While true in the past, the conventional wisdom is no longer true today; the advantage that older workers had has disappeared. This loss of relative job security is troubling. Once displaced,...

Under Social Security, married individuals are entitled to a retired worker benefit based on their own earnings and/or to a spousal benefit equal to one half of their spouse’s benefit claimed at the Full Retirement Age (currently 66). If a married individual claims before the Full Retirement...

When to claim Social Security is one of the most important decisions Americans make when approaching retirement. Currently, retirees can choose between claiming at the Full Retirement Age and receiving full benefits, claiming as early as age 62 but receiving reduced benefits, or delaying...

Even if households work to age 65 and annuitize all their financial assets, including the receipts from reverse mortgages on their homes, the National Retirement Risk Index (NRRI) has shown that 44 percent will be ‘at risk.’ ‘At risk’ means they will be unable to maintain their standard...