Proving the Retirement Crisis
Income Replacement Rates have been trending down for those on Social Security in retirement over the recent years. Your benefits from Social Security are calculated based on your average income over the top 35 earning years of your career adjusted to inflation for today’s dollars. For most, this means that they receive 40% from Social Security of what they earned on average in their working lives. This percentage has been on a downward trend for the past few years and is expected to keep falling. This is being attributed to the increasing full retirement age and is used as proof of the retirement crisis many are pointing out in the United States. For more information on this topic, visit this article by Philip Moeller with TIME.
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