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Pensions For Seniors
Although no one talks about it pensions for seniors is of prime importance given the fact that the baby boomers are all getting ready to retire. It is about time that the Congress, policy makers and people in general start thinking about pensions for seniors which would be their only source of retirement income. |
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Social security is still the main source of retirement income for most Americans as many seniors do not end up saving money for retirement. That is why pensions for seniors has be given impetus and the Congress has tried to address this issue by changing the tax code to encourage the growth of private pension plans.
Having the security of pension is an elusive goal for many retirees. According to a study conducted the Center for Retirement Research at Boston College, nearly 43 percent of people reaching retirement age will not be able to sustain their current standard of living once they retire.
Many private pension plans are based on stock market returns. This can affect the amount of pension a senior get. However, pensions for seniors are not such a grim prospect as it was decades ago. It has been seen that most retirees nowadays get a major chunk of their income from private pensions. This chunk is approximately 10.2 percent of their income. At the same time seniors over 65 receive less income from their assets such as dividends, interest payments and trust disbursements. A study revealed that retirement income for seniors in 2004 was around 20.4 and in 2006, this reduced to 12.6 percent.
All this proves the need to ensure that there are strong and reliable pension plans for seniors so that they can sustain and live without being dependent on anyone.
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