Saving for Retirement: Household Decisionmaking and Policy Options [July 2, 2020]   [open pdf - 1MB]

From the Summary: "Retirement saving and financial planning have become more important for achieving financial security during retirement. After three decades of growth, employer-sponsored defined contribution (DC) plans and tax-favored Individual Retirement Accounts (IRAs) have become two important retirement income sources for many Americans. About 52% of U.S. households had retirement assets in DC plans or IRAs in 2016. In the past few decades, the major responsibility of retirement investing and planning has shifted from the employer to the American worker. With DC plans and IRAs, people typically need to make decisions about how much to contribute each year, how to invest their retirement wealth over a lifetime, and how to withdraw their funds in retirement without outliving their assets. Making these decisions may require complicated calculations involving uncertainty about future conditions, such as expectations about inflation and market returns, estimates about health care expenditures, and projections about family members' longevity. Some people may find it difficult to navigate the various options and decisions."

Report Number:
CRS Report for Congress, R46441
Public Domain
Retrieved From:
Congressional Research Service: https://crsreports.congress.gov/
Media Type:
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