Households with both a defined-benefit pension plan and Social Security with savings are less likely to outlive their savings than households without a defined-benefit pension. The research stems from Ernst & Young LLP’s latest findings on financial security during retirement.
“A couple with preretirement earnings of $75,000 that will have a pension has a 31 percent chance of outliving their assets. That couple without a pension has a 90 percent chance of outliving assets,” reports Scott Burns of the Boston Globe. “The study confirms what Alicia Munnell, director of the Center for Retirement Research at Boston College, has been warning for years – that a smaller role for Social Security benefits, rising Medicare premiums, and disappearing pensions will make the retirement of younger workers far more difficult than those of current and past retirees.”