The nation’s retirement savings gap varies by gender, marital status and other factors, according to new search.
The Employee Benefit Research Institute (EBRI) unveils this finding in a new report, “Retirement Savings Shortfalls: Evidence from EBRI’s Retirement Security Projection Model.” Published in the February “EBRI Issue Brief,” the report is based on results from its proprietary Retirement Savings Projection Model. The RSPM estimates the size of the deficits that households are simulated to generate in retirement, or retirement savings shortfalls (RSS).
The research pegs the aggregate national retirement savings deficit at $4.13 trillion for all U.S. households between age 25 and 64. The estimate is based on current Social Security benefits not being cut in the future.
With the program’s Old-Age, Survivors and Disability Insurance (OASDI) trust fund projected to be exhausted by 2033, EBRI estimates the retirement deficit will increase to $4.38 trillion at that time if no additional funding is provided and a pro rata reduction in Social Security benefits is allowed to take effect.