New study shows retirement could mean lower standard of living for Americans

The Center for Retirement at Boston College released a study estimating American’s readiness for retirement. The study assumes people will retire at 65, and will take out a reverse mortgage on their houses for additional financial support.

The results show that 43% of working age households are now at risk of being forced into a lower standard of living in retirement. Those born between 1964 and 1972, so-called “generation X,” are worse off. Almost half will probably have to lower their standard of living.

Low income families are in the biggest trouble: 53% are likely to have to reduce their standard of living — already at the low end of the scale — when they retire.

The report speculates that many people will probably just keep working instead of retiring.

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