At a Glance | March 14, 2019 America’s Retirement Deficit: EBRI Projections Show Improvements Findings from EBRI’s 2019 Retirement Security Projection Model® 1 AMERICANS’ PROSPECTS IMPROVE Projected Reduction in Retirement Deficits for American Households 2014–2019 EBRI projections found that 2014 Deficit the retirement deficit for U.S. households ages 35–64 With Social $4.71 Security Trillion decreased 13.7 percent Adjustment Social Security trustees estimate that from $4.44 trillion (in current 2 funds will be exhausted by 2034. dollars) in 2014 to $3.83 Under $4.44 Current Law Trillion trillion in 2019. 2019 Deficit 13.7% decrease After taking into account pro in deficit over the $4.06 past five years rata reductions to Social Trillion Assuming Social Security retirement Security retirement benefits benefits continue under current law. 2 in 2034 , the deficit reduction $3.83 is 13.8 percent. Trillion DEFICIT S DECRE A SE (FOR MOS T ) Average Retirement Deficits by Age Cohort 2014 vs. 2019 The largest improvement was experienced by younger households, with those ages Household 2014 Deficit Ages 35–39 projected to have a 35–39 $63.4k 22 percent decrease in their average deficits. Workers nearest to retirement, The youngest cohort saw however, saw an increase in the most improvement retirement deficit. 40–44 $56.0k 2019 Deficit 45–49 $49.7k $49.1k 55–59 $45.7k $44.2k 50–54 $45.5k $44.1k $44.1k $43.0k 60–64 $42.9k Deficits increased $42.7k for the oldest cohort SOURCES: EBRI Retirement Security Projection Model® versions 2163, 3459, and 3461. Jack VanDerhei. “Retirement Savings Shortfalls: Evidence from EBRI’s 2019 Retirement Security Projection Model,®” EBRI Issue Brief, no. 475 (March 7, 2019). 1. Trillions of 2019 dollars, for households headed by individuals ages 35–64: 2014 (adjusted for inflation), 2019 baseline, and 2019 adjusted for Social Security Reduction. 2. The 2018 Annual Report Of The Board Of Trustees Of The Federal Old-Age And Survivors Insurance And Federal Disability Insurance Trust Funds, page 66. © 2019 EBRI