Social Security Report

John Iekel summarizes testimony given by Andrew Biggs, resident scholar at the American Enterprise Institute, to the House Budget Committee on May 15, 2019.  Biggs’ list of “facts, figure and ideas” were enlightening not just to members of Congress but retirement professionals as well.  The thirteen takeaways are listed below, but read the full piece here for more detailed information on each.  1. People are saving more than ever.  2.Retirement savings are higher than they ever have been.  3. Retirees say that they’re doing fine.  4. The poverty rate for retirees is falling. 5. Coverage by traditional pensions was not that high in their “golden age.  6. Social Security benefits are more adequate than you think.  7. The typical retiree has a pre-retirement income replacement rate better than what financial planners recommend.  8. The way Social Security is fixed can have a significant effect on the economy.  9.  U.S. Retirement Plan Assets Are Far Larger than Other Countries’.  10. Seniors’ out-of-pocket health spending is not eating that much more of their incomes.  11.Pension plans are not a bellwether. 12. Retirement inequality has not worsened due to the shift from traditional pensions to 401(k)s.  13. The real gap in retirement savings is in government.