![]() ![]() This paper presents evidence on the resources available to households as they enter retirement. In short, many households have small enough amounts of accumulated wealth that they will depend heavily on the life-contingent payout streams offered by Social Security and, if they have one, a defined benefit pension. The median financial asset holding for this group, including holdings in personal retirement accounts, is $52,000. Only 45 percent had more than $20,000 in non-retirement-account financial assets. A much higher fraction-87 percent-had some financial assets outside their retirement accounts, but for many households the amount of such assets was relatively modest. In 2008, just over 80 percent of these households had some equity in their home or another property, while 52 percent had assets in personal retirement accounts. Throughout our analysis, we will define “retirement-age households” as those headed by someone between the ages of 65 and 69. The three most common sources of accumulated wealth are equity in an owner-occupied home, financial assets such as bonds and stocks, and financial assets held in a personal retirement account such as an Individual Retirement Arrangement or a 401(k) plan. These payout streams provide income for life-and thus provide some protection against falling into poverty if one lives an especially long life. The two most common annuitized income streams are Social Security benefits and the payments from defined benefit pension plans. Retired households are dependent on the annuitized income streams that they have built up during their working careers and on the wealth that they have accumulated in other forms. Thus, the focus of many researchers, financial services firms, and public policymakers concerned with retirement saving is shifting from the accumulation of resources while working to the drawdown of resources during retirement. Registered office: Canada Life Place, High Street, Potters Bar, Hertfordshire EN6 5BA.Ĭanada Life and design are trademarks of The Canada Life Assurance Company.As the “baby boomers” approach and enter their retirement years, the accumulation phase of their life-cycle is nearly over. Canada Life Platform Limited is authorised and regulated by the Financial Conduct Authority. Registered office: Canada Life Place, High Street, Potters Bar, Hertfordshire EN6 5BA. Stonehaven UK Ltd is authorised and regulated by the Financial Conduct Authority. Stonehaven UK Limited and Canada Life Platform Limited, trading as Canada Life, are part of The Canada Life Group (U.K.) Limited. Category A Insurance Permit holder with the Jersey Financial Services Commission. Authorised and regulated by the Central Bank of Ireland with register no. Registered office: Irish Life Centre, Lower Abbey Street, Dublin 1, Ireland. Canada Life International Assurance (Ireland) DAC. Canada Life International Limited and CLI Institutional Limited are Isle of Man registered companies authorised and regulated by the Isle of Man Financial Services Authority. Registered office: Canada Life House, Isle of Man Business Park, Douglas, Isle of Man, IM2 2QJ. 33178 and CLI Institutional Limited, registered in the Isle of Man no. Canada Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.Ĭanada Life International Limited, registered in the Isle of Man no. ![]() Canada Life Asset Management Limited is authorised and regulated by the Financial Conduct Authority. 3846823) are all registered in England and the registered office for all three entities is Canada Life Place, Potters Bar, Hertfordshire EN6 5BA. 973271) and Canada Life European Real Estate Limited (no. Canada Life Asset Management Limited (no. Canada Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.Ĭanada Life Asset Management is the brand for investment management activities undertaken by Canada Life Asset Management Limited, Canada Life Limited and Canada Life European Real Estate Limited. Member of the Association of British Insurers. Registered office: Canada Life Place, Potters Bar, Hertfordshire EN6 5BA. Canada Life Limited, registered in England no. ![]()
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