More Workers Estimated to Be Retirement Ready

May 24, 2012 ( – More than half of Baby Boomers and Generation Xers are projected to have adequate retirement income to cover basic expenses and uninsured health care costs.

Although 44% of Baby Boomers and Gen Xers are still projected to be “at risk” of running short of money in retirement, that is still 5% to 8% lower than what was estimated in 2003, according to the Employee Benefit Research Institute (EBRI).  EBRI attributes the better numbers to the increasing use of automatic enrollment.  

According to EBRI’s Retirement Income Security Projection Model (RSPM), lower-income households remain at greatest risk of having insufficient retirement income (87%). Thirteen percent of highest-income households are projected to be “at risk.” The analysis finds the aggregate national retirement income deficit, taking into account current Social Security benefits and the assumption that net housing equity is utilized “as needed,” is estimated to be $4.3 trillion for all Baby Boomers and Gen Xers.  

The analysis also estimates retirement savings shortfalls (RSS) by age cohort, as well as marital status and gender, for both Baby Boomers and Gen Xers. The additional savings required for those on the verge of retirement (Early Boomers) vary from approximately $22,000 (per individual) for married households, to $34,000 for single males and $65,000 for single females.  

A full report is available in the May 2012 EBRI Notes at