Employee Benefit Research Institute’s Retirement Profile Study

[ExFlyBoy5]

Somewhat interesting research of different groups of retirees.

The Story: https://www.cnbc.com/2021/08/04/the...able-or-affluent-.html?recirc=taboolainternal

Actual Study: https://www.ebri.org/docs/default-s...retireeprofiles-29jul21.pdf?sfvrsn=e8023b2f_4

Although every retirement looks different, those with guaranteed income, little debt, a clear spend-down strategy and employer-provided assistance are among the most satisfied.

That’s according to a study from the Employee Benefit Research Institute’s Retirement Security Research Center, profiling five types of retirees. The study uncovered patterns among retirees who identify as “average,” “comfortable,” “affluent,” “just getting by” or “struggling.”

The groups are Average Retirees, who make up 28 percent of total respondents; Comfortable Retirees (22 percent); Affluent Retirees (19 percent); Struggling Retirees (18 percent); and “Just-GettingBy” Retirees (12 percent).

 

[rothlev]

Somewhat interesting research of different groups of retirees.

The Story: https://www.cnbc.com/2021/08/04/the...able-or-affluent-.html?recirc=taboolainternal

Actual Study: https://www.ebri.org/docs/default-s...retireeprofiles-29jul21.pdf?sfvrsn=e8023b2f_4

thanks for posting. interesting report. Those seems that it only applies to those with net worth under 1 million.

 

[MichaelB]

Thanks for the link, ExFlyBoy5. A short report, but the way they categorize retirees should resonate easily with members here, and I think their conclusions also fit with views that are pretty mainstream for us.

 

[TheWizard]

It says they screened out retirees with more than $1M in assets. No idea why...

 

[Graybeard]

The RSRC document was interesting but I sure hope they didn't spend a lot of money to realize this, I could have told them that for free -

Retirees with guaranteed income, little debt, a clear spend-down strategy and employer-provided assistance are among the most satisfied, according to a study from the Employee Benefit Research Institute.

 

[chassis]

EBRI? Never heard of them. I read the "About" section on their website and still don't know who they are, who funds them, and who they cater to.

Does anyone know who they are, really?

 

[Out-to-Lunch]

It says they screened out retirees with more than $1M in assets. No idea why...

I don't think that is quite right. A different study called "Spending in Retirement Survey" excluded folks with assets above $1M. I don't think that the study referenced here does that, except to the extent that it is informed by the earlier study. It explicitly considers anyone with assets of $320,000 or more as an "Affluent Retiree."

 

[jazz4cash]

I don't think that is quite right. A different study called "Spending in Retirement Survey" excluded folks with assets above $1M. I don't think that the study referenced here does that, except to the extent that it is informed by the earlier study. It explicitly considers anyone with assets of $320,000 or more as an "Affluent Retiree."

Not sure why you believe that. The way I read this, the study is a subset analysis using data from from the earlier study. To quote

“The study uses EBRI’s Spending in Retirement Survey data, which polled 2,000 retired households in September. The retirees were ages 62 to 75 with less than $1 million in financial assets.”

I don’t understand why but I guess 1M is a reasonably huge nest egg to exclude for a study of the masses.

 

[DrRoy]

The RSRC document was interesting but I sure hope they didn't spend a lot of money to realize this, I could have told them that for free -

+1 The more income and assets you have in retirement, the better off you feel. What a remarkable conclusion.

 

[scrabbler1]

+1 The more income and assets you have in retirement, the better off you feel. What a remarkable conclusion.

+2.

Even though most of the age range of retirees in the study were of Medicare age (65+), I was a little surprised the study didn't mention the federal subsidies in the ACA as an indirect (but valuable) income source for those with low income.

 

[Koolau]

+1 The more income and assets you have in retirement, the better off you feel. What a remarkable conclusion.

Yeah, I too was attempting to suppress a "duh!" reaction. Without intent of sounding conceited, the levels of retirement savings discussed in the report seem underwhelming. I would never have considered retiring with $320K (assuming I was still fit enough to continue w*rking.) YMMV as always.

 

[ExFlyBoy5]

Yeah, I too was attempting to suppress a "duh!" reaction. Without intent of sounding conceited, the levels of retirement savings discussed in the report seem underwhelming. I would never have considered retiring with $320K (assuming I was still fit enough to continue w*rking.) YMMV as always.

I wouldn't necessarily agree with the assumption that "more money makes you happier." There are plenty of studies that have shown that the level of happiness in relation to income isn't what common sense would lead you to believe. If I recall, an income around $60K (give or take) is the "sweet spot"...any more and there tends to be a decline on the scale of happiness.

 

[ExFlyBoy5]

EBRI? Never heard of them. I read the "About" section on their website and still don't know who they are, who funds them, and who they cater to.

Does anyone know who they are, really?

Some info: https://en.wikipedia.org/wiki/Employee_Benefit_Research_Institute

Employee Benefit Research Institute (EBRI) is a nonpartisan, nonprofit research institute based in Washington, DC, that produces original research on health, savings, retirement, and economic security issues, including 401(k) and retirement plan coverage data, post-retirement income adequacy, health coverage and the uninsured, and economic security of the elderly.

EBRI is an independent institute, representing no particular special interest or ideological perspective. Its membership includes a broad range of benefit-related organizations that often have differing policy goals.

EBRI maintains the largest 401(k) microdatabase in the nation that tracks individual 401(k) participant investment activity. EBRI researchers have been frequently asked to testify about their research before Congress on a variety of retirement, health, savings, and economic security issues.