- Future retirees are expected to have slightly more retirement income than today's retirees, but these gains will be wiped out by higher out-of-pocket medical expenses.
- Social Security will be the main source of retirement income at all income levels, including 51% of per capita household income for future middle-income retirees, rising to over 80%for downwardly mobile middle-income retirees who will move into the lower-income group.
- Middle-income workers who move into the higher-income group in retirement will achieve this primarily by working longer (e.g., age 70)
- The retirement income gap among racial and ethnic groups is expected to narrow as the youngest groups move closer to retirement.
- The recent recession is expected to adversely affect the age 45-54 group as they have less time to regain losses as compared to current retirees.
- Rising out-of-pocket medical expenses will neutralize any improvements in retirement income and declining poverty rates.
- It will be difficult for future retirees to keep pace with the middle-calss standard of living.
The full report, What Are the Retirement Prospects of Middle-Class Americans?, is available on the AARP website.