More Workers Estimated To Be Retirement Ready

More than half of Baby Boomers and Generation Xers are projected to have adequate retirement income to cover basic expenses and uninsured health care costs.

Although 44% of Baby Boomers and Gen Xers are still projected to be at risk of running short of money in retirement, that is still 5% to 8% lower than what was estimated in 2003, according to the Employee Benefit Research Institute (EBRI). EBRI attributes the better numbers to the increasing use of automatic enrollment.  

lLower-income households remain at greatest risk of having insufficient retirement income (87%), according to EBRI’s Retirement Income Security Projection Model. Thirteen percent of highest-income households are projected to be at risk. The analysis finds the aggregate national retirement income deficit, taking into account current Social Security benefits and the assumption that net housing equity is utilized as needed, is estimated to be $4.3 trillion for all Baby Boomers and Gen Xers.  

The analysis also estimates retirement savings shortfalls by age cohort, marital status and gender, for both Baby Boomers and Gen Xers. The additional savings required for those on the verge of retirement (Early Boomers) varies from approximately $22,000 (per individual) for married households to $34,000 for single males and $65,000 for single females.  

A full report is available in the May 2012 EBRI Notes at