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Gaobo Pang and Sylvester J. Schieber, Towers Watson
June 24, 2014
"The measurement of preretirement income and its spendable portion as an indicator of living standard in working years is often exaggerated owing to inappropriate indexing. This leads to overestimates of earnings to be replaced in retirement, underestimates of the income replacement capacity of Social Security for various segments of the workforce, and misperceptions about workers' own responsibility for securing their retirement prospects. Although clearly some workers are not saving sufficiently to maintain their standards of living throughout retirement, the situation is less dire than a number of studies have suggested."
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