CLASSPP5RetirementFa10.ppt

CLASSPP5RetirementFa10.ppt - RETIREMENT Major Sources of...

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RETIREMENT
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Major Sources of Retirement Income (in order of importance) Social security (everyone) Income from assets (stocks and bonds) Pension Income Labor force participation Supplementary Security Income (SSI)
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Calculating Social Security Benefits Year of Birth Full Retirement Age Age 62 Reduction (Months) Monthly % Reduction Total % Reduction Before 1943 65 36 .555 20.00 1943-1959 66 48 .520 25.00 1960 and later 67 60 .500 30.00
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Social Security Most prevalent and important income source 90% of elderly receive Social Security About 2/3 of the elderly rely on Social Security for more than half their income Amount of average benefit has increased because of rising wages Proportion of elderly who rely on it for their total income has increased Women and minorities are more likely to rely on it for their total income (because they don’t have as well paying/advanced
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(stocks, bonds, or other investments) Second most important source of
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CLASSPP5RetirementFa10.ppt - RETIREMENT Major Sources of...

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