CNBC: Retirement incomes will become more unequal, study finds

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CNBC: Retirement incomes will become more unequal, study finds

Ohio seniors have put in decades of hard work—and should be able to retire without worrying about the cost.

But for too many retirees, that’s not the reality.

Sherrod fights every day to ensure seniors have the healthcare, benefits, and resources they need to get by. Numbers like these are another reminder of why that work is so important, and why we need him in the Senate, fighting for a more equal country. Learn more, and get involved:

CNBC: Retirement incomes will become more unequal, study finds  

Annie Nova – August 7, 2018

Key points:

  • New numbers from a report by the Urban Institute show that if income inequality continues to grow, so too will the gap between wealthy and struggling retirees.

  • Social Security benefits, along with defined contribution plans and other retirement savings options, generally are tied to previous earnings, which are increasingly a story of imbalance.

  • People who fall near the bottom of income distribution have actually seen their wages decline over the past few decades, according to the institute. Meanwhile, the share of earnings going to the top 0.1% swelled by more than 400% between 1971 and 2001.

  • According to the study, people aged 67 to 75 in the top fifth of the income distribution will see their income increase by 3% in 2045, 5% in 2065 and 7% in 2085.

  • On the other hand, those aged 67 to 75 in the bottom fifth of the income distribution will see their income fall by 3% in 2045, 6% in 2065 and 13% in 2085.

  • Many retirees are already finding it hard to get by. The average monthly Social Security payment is $1,404, and more than 40% of single adults receive more than 90 percent of their income from that check, according to the government.

  • Meanwhile, debt among older people is on the rise. In 2016, the average debt in families in which the head of the household is age 75 or older was $36,757. That is up from $30,288 in 2010, according to a recent report by the nonprofit Employee Benefit Research Institute in Washington.

Read more here.