How Well Prepared Are People Age 55-64 for Retirement? Selected Indicators of Well-Being in a Comparison of Three Cohorts

Howard Iams, U.S. Social Security Administration (SSA)
John W. R. Phillips, National Institute on Aging (NIA), NIH
Irena Dushi, U.S. Social Security Administration (SSA)
Lionel Deang, U.S. Social Security Administration (SSA)

Dramatic changes in life expectancy, women’s roles, the structure of the workforce, and pension systems have occurred in recent history all influencing the well-being of future retirees. This paper uses U.S. data to focus on the retirement resources of persons aged 55-64. By comparing these resources for near retirees in 2004 to their counterparts in 1994 and 1984, this paper provides some indication of the preparedness of future aged relative to those who retired before them. Preliminary results indicate that there are marked differences in potential retirement outcomes by educational attainment and race. Notable changes have occurred with women’s pathways into retirement due to changes in patterns of market work. Though few near retirees have purchased long-term care insurance, most near retirees could receive care from family members, so the extent of their exposure to risk is unclear.