This study was done for a coalition called "Americans for Secure Retirement" and funded by Ernst & Young. The Washington Post and others reported on it yesterday.
The key finding, as reported in their press release, is that middle class Americans don't have enough money saved for retirement. And, according to the study:
"Middle-income Americans entering retirement now will have to reduce their standard of living by an average of 24 percent to minimize the likelihood of outliving their financial assets."We guess these same middle class Boomers didn't read the McKinsey study that said if they put off retirement by a few years, the "outliving your assets" problem shrinks, if not disappears.
Probably not, because that isn't the solution offered. Instead, this coalition wants Congress to give anyone who buys an annuity a tax break on the income paid out by that annuity.
We're not sure what to make of this study and report. Not new news, as we've said before. And not a broad enough solution being offered. What middle class Boomer can afford to buy an annuity?
The public radio show Marketplace reported on this story and the reporter's last line, meant as a throw-away was "Well, I guess we could all sell the country home... [to fund retirement.]"
We don't know about you, but few middle class Boomers have "country homes." Ugh.