CRR Finds Those at Risk for Having Inadequate Retirement Income Dropped
The National Retirement Risk Index (NRRI) dropped from 52 percent to 50 percent of working-age households between 2013 and 2016, according to the Center for Retirement Research (CRR) at Boston College. The NRRI is constructed using data from the Federal Reserve's 2016 Survey of Consumer Finances and compares projected replacement rates with target rates that would allow households to maintain their living standard and calculates the percentage at risk of falling short. The CRR says between 2013 and 2016, both equity and house prices increased sharply, serving to reduce the NRRI. It noted, however, that middle-age and middle-income households still faced problems. “This analysis clearly confirms that many of today's workers need to save more and/or work longer to achieve a secure retirement,” the researchers concluded.