Nearly half of households face retirement shortfall.Although many U.S. workers are confident of their financial prospects during retirement, nearly half of households are "at risk" of being unable to maintain their pre-retirement standard of living, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. recent research. The annual Retirement Confidence Survey, conducted by the nonprofit A corporation or an association that conducts business for the benefit of the general public without shareholders and without a profit motive. Nonprofits are also called not-for-profit corporations. Nonprofit corporations are created according to state law. Employee Benefit Research Institute, found that more than 60 percent of workers expect to receive income from traditional pension plans, but only 40 percent are currently covered by them, and many employers are eliminating them. Overall, nearly a quarter of survey participants said they are "very confident" they will have enough money to live comfortably in retirement, while 44 percent--up from 40 percent last year--said they are "somewhat confident" about their retirement finances. Income and savings data suggest, however, that workers may be overly optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about their retirement prospects. The National Retirement Risk Index, developed by the Center for Retirement Research at Boston College Boston College, main campus at Chestnut Hill, Mass.; coeducational; Jesuit; est. and opened 1863. Actually a university, the school's Chestnut Hill campus comprises colleges of arts and sciences and business administration, the graduate school, and schools of nursing , shows that 45 percent of working-age households are "at risk" of failing to maintain their pre-retirement standard of living in retirement. Rising Social Security retirement ages and declines in traditional pensions are primarily to blame for this predicament Predicament Dancy, Captain Ronald must persecute friend to save own skin. [Br. Lit.: Loyalties, Magill I, 533–534] Gordian knot inextricable difficulty; Alexander cut the original. [Gk. Hist. , as are longer lifespans and low savings rates Savings rate Personal savings as a percentage of disposable personal income. . For more information about the index, visit www.bc.edu/crr/nrri.shtml.
Percentage of Households "At Risk" at Age 65
Income Group All Early Boomers Late Boomers Gen Xers
1946-54 1955-64 1965-72
All 43% 35% 44% 49%
Top third 36% 33% 35% 42%
Middle third 40% 28% 44% 46%
Bottom third 53% 45% 54% 60%
SOURCE: Boston University, Center for Retirement Research
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