"The rise of the 401(k) would not be much of a problem if these accounts provided an effective way to husband assets for retirement periods that are growing longer, or if Social Security and employer pensions were as secure as they used to be.... Social Security's full retirement age is increasing to as high as 67 (for those born in 1960 or later) from the traditional 65. The change means that those subject to the maximum retirement age who nevertheless retire at 65 will receive 86.7% of their full benefits. In other words, most new retirees are facing a benefit cut, one way or another."

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