The Effect of a Universal Automatic IRA With Emergency Savings on Household Wealth
This report models the effects of an Automatic Individual Retirement Account (Auto IRA), a simple retirement savings program that is currently in use in several states, along with a feature for emergency savings. Read.
US Small Business Employment and Older Workers
This paper provides details on older workers’ prominent position in what remains a key driver of the labor force and overall economy: small businesses. Read
Payroll Deduction Retirement Programs Build Economic Security
Access to an employer-based retirement plan is critical for building financial security later in life, yet nearly half of American employees in the private sector work for an employer that does not offer either a traditional pension or a retirement savings plan. This figure has not changed much in decades, but the growing number of state-facilitated, privately managed retirement savings programs are helping to close this gap. Read
Employment Data Digest
The latest monthly digest of employment data from the Bureau of Labor Statistics (BLS) examines the findings from the Employment Situation Report. It takes a closer look at employment data for people ages 55 and over, including labor force participation, employment rates, and duration of unemployment. Read
From Short-Term Financial Well-Being to Long-Term Financial Security
This paper examines how financial well-being (FWB) evolves over time, what factors and behaviors are most predictive of large increases or decreases in FWB, and whether these relationships may have changed following the onset of the COVID-19 pandemic. Read
The Changing Picture of Who Claims Social Security Early
As individuals approach their 60s, they face the important decision about when to start claiming Social Security retirement benefits. This report examines the characteristics of those who decide to start collecting at the early eligibility age of 62 compared with those who wait until later. Read
The Consequences of Claiming Social Security Benefits at Age 62
This paper by Philip Armour and David Knapp of the RAND Corporation asks what financial consequences the decision to collect Social Security early might have for the individual over time. Read
The U.S. Essential Workforce Ages 50 and Older: A Snapshot
During the early stages of the COVID-19 crisis, as businesses either closed or moved employees to telework, the vital importance of a segment of the overall working population, the essential workforce, came to light for Americans. These workers perform jobs that are necessary to critical infrastructure operations. Read
Financial Access Challenges for Older Adults
Nearly 15 million households 50 and older face gaps in financial access that increase both their costs and risk. This fact sheet examines these gaps, including findings on bank account ownership, account access methods, and credit activity. Read
Facilitating Workplace Emergency Savings Programs Through Payroll Cards
There are many ways to structure workplace savings programs, but this report looks at a model that includes four key elements to ensure widespread employer adoption and employee participation: 1) automatic enrollment, 2) consumer-friendly features, 3) regulatory feasibility and 4) affordability for employers. Read
How Does Earnings Inequality Affect Social Security Financing?
Earnings inequality accounts for a considerable portion of Social Security’s fiscal challenges. This report found that if 90 percent of earnings had been subject to Social Security payroll taxes since 1983 the system’s long-term financing gap would be 25 percent lower today and the life of the combined trust funds would last an additional four years above current Social Security projections. Read
Making the Earned Income Tax Credit Work for Workers Ages 65 and Older
It's time to bring the Earned Income Tax Credit (EITC) into the 21st century by removing its age ceiling. Today’s policy makers looking for ways to improve retirement security and incentivize older workers to remain in the workforce, can start by updating this outdated policy that excludes most low-income workers ages 65 and older from one of the nation’s backbone income-support programs simply by virtue of their age. Read
Unlocking the Potential of Emergency Savings Accounts
Despite the United States being in the midst of a prolonged period of economic growth and record-low unemployment, a large share of Americans remain just one surprise event away from financial distress. This report focuses on emergency savings accounts as one potential solution to short-term financial fragility. Read
Achieving Economies of Scale in State-Facilitated Retirement Savings Programs: The Case for Multi-State Collaboration
States have considered creating individual retirement savings programs that would serve only their own citizens. However, states should explore other models — ones based on a multi-state or regional approach that would enable participating states to provide even better services to their citizens. Read
A The Role of Employer Repayment Programs in Tackling Student Loan Debt
In 2019, total student loan debt in the United States equaled $1.5 trillion, a more than five-fold increase from 2003 levels. The average college senior who took on student loans now graduates with over $29,000 in debt. Read
A Look at College Costs across Generations
College costs have risen dramatically over the past several decades. This report compares college costs from 1964-1965 up through the present day, and examines how higher costs—and increased borrowing—may affect young workers’ future retirement security. Read
The Student Loan Debt Threat: An Intergenerational Problem
Student loan debt is an intergenerational problem, burdening borrowers of all ages and threatening the long-term financial security of millions of families. This paper examines the landscape of student loan debt with a focus on older borrowers, including increasing loan balances, defaults, taking on debt to help family members, and the implication for long-term financial security. Read
Defraying High Out-of-Pocket Health Care Costs: The Medical Expense Tax Deduction
The medical expense tax deduction helps millions of middle-income taxpayers of all ages confront high out-of-pocket health care costs. The fact sheet presents national and state estimates of extending recently expired temporary changes, adopted under the Tax Cuts and Jobs Act of 2017. Read
Saving at Work for a Rainy Day: Perspectives from Employees
Today, a significant share of American households lack the financial resources to weather a modest financial setback. According to the Federal Reserve, four in ten American households could not come up with $400 in a financial emergency. This lack of liquid savings puts their short-term and long-term financial wellness at risk. Read
An Aging Labor Force and the Challenges of 65+ Jobseekers
Although the labor force participation rate of older workers is growing, jobseekers ages 65 and older face many challenges in their search for work. Compared with younger jobseekers, they experience longer durations of unemployment, and many encounter age discrimination. They are also more likely to be reentering the labor market after time spent away, or to be rebuilding their career after a layoff. Read
Older Workers and Part-Time Employment
Workers ages 50 and older are more likely to work part time compared with their younger counterparts. This Fact Sheet examines current trends in part time work, including demographic differences and compares reasons for working part time in different age groups. Read
Seniors with High Unreimbursed Health Care Costs: Who Are They?
In 2013, roughly 25.8 million traditional Medicare beneficiaries spent at least 10 percent of their income on out-of-pocket health care expenses. The medical expense tax deduction makes health care more affordable for people with significant out-of-pocket expenses. This factsheet presents some of the key socio-economic and health characteristics of Medicare beneficiaries who bear such a high health care cost burden and for whom the medical expense tax deduction is critical. Read
Medical Expense Tax Deduction: Key Characteristics by State
Today taxpayers with high out-of-pocket medical expenses may be able to deduct a portion of their costs from their taxable income. In 2015, 8.8 million taxpayers relied on this tax provision, deducting $86.9 billion.1 Between 2016 and 2020, the deduction is estimated to reduce the tax bill of these taxpayers by a total of $56.6 billion. Read
Protecting Consumers during the Telephone Network Modernization
Many older adults continue to rely on the traditional copper wire landline phone networks. However, many telephone companies are now switching to fiber networks using Internet Protocol services, or to fixed wireless service. This transition raises important consumer concerns about issues such as reliability, service quality, and cost. Read
The Fight to Eliminate Unwanted Robocalls
Unwanted telemarketing calls are consistently the biggest source of consumer complaints received by the Federal Communications Commission (FCC). Of particular concern are prerecorded calls —better known as ‘robocalls’. Read
The Importance of an Open Internet to Older Americans
Maintaining an open Internet is central to keeping making sure older adults benefit from all the Internet has to offer. Without the open Internet consumers could face reduced Internet access, higher costs, and miss out on innovative products and services that could benefit older Americans. Read
Improving the Saver’s Credit for Low- and Moderate-Income Workers
This report reviews the existing structure of the Saver’s Credit and proposes several ways to make it more effective. It also discusses retirement plan coverage for low- to moderate-income workers and considers a number of ways to improve both the effectiveness and the utilization of the credit. Read
Liquid Savings of Working Households Ages 50-64
Millions of households have little to no liquid savings to cushion them from the unexpected. While liquid savings levels increase with age and income, a third of pre-retirees have less than $2,000 in liquid savings, which is the cost of a typical worst-case financial shock. Read
Fiscal Savings to States of Helping People Save More for Their Own Retirement
When individuals save for retirement they are less likely to rely on public assistance programs later in life. These fact sheets show the fiscal savings to state governments that could result from lower-income retirees having saved through Work and Save programs during their working years. Read
Access to Workplace Retirement Plans by Race and Ethnicity
Workers are 15 times more likely to save for retirement if they have access to a payroll deduction savings plan at work. Yet nearly half of American private-sector employees—roughly 55 million—work for an employer that does not offer a retirement plan. Black, Asian, and Hispanic employees are less likely than White employees to be covered by a plan. They also strongly support efforts by states to create retirement savings programs for small-business employees whose employer does not already offer a plan. Read
