People increasingly face insecure futures in retirement because policy has contributed to households’ rising risk exposure just as labor and financial risks have grown. The result has been that savings have become less stable—households cannot be sure that their savings will be available when they need them—and that wealth inequality has grown—a few households have seen substantial gains in their savings, while most households struggle with saving for their future. This situation is akin to being on a boat in a brewing storm, where the rich get state-of-the-art survival suits and life rafts, while middle- and low-income households need to find ways to sink or swim as they tread water.
KeywordsMutual Fund Risk Exposure Saving Account Social Security Benefit Retirement Saving
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