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NIRS Releases Report on Escalating Costs and Risks During Retirement
On September 8, 2020, the National Institute on Retirement Security (NIRS) released its study report, The Growing Burden of Retirement: Rising Costs and More Risk Increase Uncertainty. The study findings indicate that rising risk and escalating costs for housing, health care and long-term care are threatening Americans’ financial retirement security.
Key findings include:
- For many workers, saving early and continuously during working years can be difficult.
- Typically, workers face various risks when they approach retirement age such as market timing, interest rate and longevity risks.
- Although older Americans are the most likely to own a home, those age 65 and older that are cost-burdened by housing costs has risen with more having mortgage debt into retirement.
- Healthcare costs continue to increase, but these costs are higher for older Americans since they are more likely to have multiple chronic health conditions.
- Long-term care costs are an increasing challenge for many older Americans since those needing long-term care is projected to increase as the Baby Boomers continue retiring.
The report is available here.