Industry News

On March 26, 2019, the U.S. Government Accountability Office (GAO) updated selected estimates from its June 2015 report, Retirement Security: Most Households Approaching Retirement Have Low Savings. The previous 2015 report on retirement security included estimates on the percentage of households age 55 and over without retirement savings or a defined benefit (DB) plan. The GAO updated these estimates using data from the 2016 Survey of Consumer Finances, which was released in September 2017 by the Board of Governors of the Federal Reserve System. According to the GAO, the percent of households headed by someone age 55 and over without retirement savings decreased from about 52% in 2013 to about 48% in 2016.

The 2015 study examined the financial resources of workers approaching retirement and of retirees, along with evidence provided by studies and surveys regarding retirement security. The GAO conducted the study by: 1) interviewing retirement experts about retirement readiness; 2) analyzing household financial data, including the Federal Reserve’s 2013 Survey of Consumer Finances on retirement savings and income; and 3) reviewing academic studies of retirement savings adequacy.

The GAO analysis identified several issues regarding the retirement security of the growing older population, including: 1) longer life expectancies; 2) private-sector pension coverage shifting from defined benefit (DB) plans to defined contribution (DC) plans; and 3) uncertainty regarding Social Security’s long-term financial condition.

The report is available here.