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A Statistical Look at the Impact of Savings Rates and Social Security’s Progressive Design
With a barrage of statistics, Forbes contributor Andrew Biggs, a resident scholar at the American Enterprise Institute, examines assumptions in the media about the retirement savings rates of poor vs. rich in an article posted on www.forbes.com. His premise is that while the quantity of dollars saved over a lifetime may be less than higher earners,it may in fact enable very low earners to improve their standard of living in retirement, given the progressive design of Social Security’s benefit calculations. He uses a factor called a “money’s worth ratio” to make the point that “(t)he typical poor retiree, in fact, has a higher income in retirement than they had when before they retired.” Biggs’ article can be accessed here…