Retirement Income: Ensuring Income throughout Retirement Requires Difficult Choices

TitleRetirement Income: Ensuring Income throughout Retirement Requires Difficult Choices
Publication TypeReport
Year of Publication2011
AuthorsUnited States Governmental Office
InstitutionWashington, DC, U.S. Government Accountability Office
KeywordsConsumption and Savings, Pensions, Public Policy, Social Security
Abstract

Question: The shift from defined benefit to defined contribution plans has placed more responsibility for saving for retirement on individuals shoulders. GAO considered the pros and cons of various policy options to enhance retirement income security. Finding: Using the NIA-funded Health and Retirement Study, GAO found that: (a) retirees rely primarily on Social Security and pass up opportunities for increased retirement income; (b) few retirees choose the annuity option for receipt of their defined benefit pension income; (c) elderly appear to draw down their savings gradually. Options such as encouraging annuitization and improving financial literacy so that people are aware of their investment options and associated risks were discussed as ways to bolster retirement income security.
Endnote Keywords

pension Plans/Public Policy/Defined benefits/defined contribution pension plans/retirement Saving/social Security
Endnote ID

62568
Citation Key5906