Falling Short Quotes

“Keeping skills up to date requires the investment of time, effort, and perhaps even money for tuition. But it’s worth it for an extra decade of productive activity.”
― Charles D. Ellis, Falling Short: The Coming Retirement Crisis and What to Do About It

“Spending a few more years in the labor force greatly increases monthly Social Security benefits. Under the program’s current structure, participants can start collecting benefits at any age between 62 and 70.2 But, to maintain fairness, benefits claimed before 70 are actuarially reduced so lifetime benefits are made roughly equal for both early and late claimers. These adjustments are very significant. Monthly benefits for those who start claiming Social Security benefits at 70 are a full 76 percent higher than for those who start taking benefits at age 62 (see table 4.1). (If working longer also raises the average level of our 35 years of earnings used in the Social Security benefit calculation—which it probably will—the increase could be even greater.)”
― Charles D. Ellis, Falling Short: The Coming Retirement Crisis and What to Do About It

“Let’s start with working longer. Many of us are healthier and have less physically demanding jobs than our parents and grandparents. And we are living much longer. So stretching out our work lives is a sensible option. And the payoff is eye-popping! Individuals who delay receiving Social Security benefits from 62 to 70 increase their monthly benefits by a full 76 percent. Government”
― Charles D. Ellis, Falling Short: The Coming Retirement Crisis and What to Do About It

“Table 5.2 Retiring before 70 Means Much Lower Benefits “Net” Replacement Rate for Medium Worker by Retirement Age, 1980–2030 Note: Year is date retiree reaches age 65. Replacement rate is net of Part B and D premiums, as well as taxation of benefits. Part B SMI deduction for 2030 assumes SMI continues to cover 26 percent of plan costs and uses Trustees’ Report enrollment and cost growth assumptions. The assumptions are that the beneficiary has enough other income to have benefits taxed (about $10,000 in 2030) and that the tax rate is 12.5 percent. Sources: Authors’ calculations based on Centers for Medicare and Medicaid Services (2013); and Social Security Administration (2013b).”
― Charles D. Ellis, Falling Short: The Coming Retirement Crisis and What to Do About It

“That’s it: work longer, fix Social Security, save more through 401(k)s, and consider using home equity. These steps are all doable, and they should all seem familiar.”
― Charles D. Ellis, Falling Short: The Coming Retirement Crisis and What to Do About It