Young Americans tend to be too poorly prepared for retirement for tax increases to make their situation any more dire than it already is.
Alicia Munnell and other researchers at the Center for Retirement Research at Boston College write about the possible effect of higher tax rates on national retirement readiness in a paper posted on the center’s site.
The researchers used data collected in connection with efforts to develop a National Retirement Risk Index sponsored by Nationwide Mutual Insurance Company, Columbus, Ohio.
The researchers analyzed the impact of a scenario in which federal tax revenue would rise to 28% of U.S. gross domestic product in 2050, from about 18% today.
The percentage of all households at risk of being unable to continue their current standard of living after retirement could increase to 54%, from 51%, the researchers estimate.
The percentage could increase to 47%, from 41%, for early boomers