Abstract
The population of the United States is aging, putting unsustainable strains on Social Security, Medicare, and Medicaid. These programs must be reformed, but there will also be increased pressure on individuals to save more and work longer if they are to enjoy a healthy retirement. Moreover, individuals must become much more sophisticated about the financial aspects of retirement in order to make wise choices. That said, the United States has many good options for successfully coping with the challenges of aging, but it is imperative that we act now.
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Notes
Lusardi and Mitchell [2006] utilize data from The University of Michigan Health and Retirement Study (HRS), a longitudinal panel study that surveys a representative sample of more than 26,000 Americans over the age of 50 every two years.
References
Lusardi, Annamaria, and Olivia S. Mitchell . 2006. “Baby Boomer Retirement Security: The Roles of Planning, Financial Literacy, and Housing Wealth,” NBER Working Papers, November.
National Academy of Sciences, 2012. Aging and the Macroeconomy: Long-Term Implications of an Older Population. National Academies Press.
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Disclaimer: The material in this paper is for informational purposes only and should not be regarded as a recommendation or an offer to buy or sell any product or service to which this information may relate. Certain products and services may not be available to all entities or persons. Past performance does not guarantee future results.
Guarantees associated with annuities are subject to the claims paying ability of the issuing insurance company.
TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc., members FINRA, distribute securities products.
Annuity contracts and certificates are issued by Teachers Insurance and Annuity Association (TIAA) and College Retirement Equities Fund (CREF), New York, NY.
Based on a presentation at the NABE Annual Meeting, on October 16, 2012.
*Roger W. Ferguson, Jr is President and Chief Executive Officer of TIAA-CREF, the leading provider of retirement services in the academic, research, medical, and cultural fields and a Fortune 100 financial services organization with $502 billion in total assets under management (as of 12/31/12). He served as Vice Chairman of the Board of Governors of the U.S. Federal Reserve System and was a voting member of the Federal Open Market Committee as well as other Federal Reserve committees. Prior to joining TIAA-CREF in April 2008, Mr. Ferguson was head of financial services for Swiss Re, Chairman of Swiss Re America Holding Corporation, and a member of the company's executive committee. From 1984 to 1997, he was an Associate and Partner at McKinsey & Company. He began his career as an attorney at the New York City office of Davis Polk & Wardwell. Mr. Ferguson served on President Obama's Economic Recovery Advisory Board and the Transition Economic Advisory Board. He serves on a number of boards of prominent nonprofit organizations. Mr. Ferguson holds a B.A., J.D., and a Ph.D. in economics, all from Harvard University.
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Ferguson Jr, R. The Road Ahead: The Graying of America and its Implications for Finance and the Economy. Bus Econ 48, 108–112 (2013). https://doi.org/10.1057/be.2013.8
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DOI: https://doi.org/10.1057/be.2013.8