CHART H. 1980 PROJECTIONS OF PUBLIC AND PRIVATE PENSIONS SOURCE: "The Economic Status of the Retired Aged TECHNICAL NOTE: This study uses a high-speed com- This simulation technique makes possible the At the same time, the differential effect of alterna- The assumptions made to project retirement Private pensions are assumed to increase at an The study also adjusts for the general rise in FOR MOST RETIREES, PENSION INCOME WILL BE LESS THAN HALF OF PAST EARNINGS Projected Ratio at Retirement of Public and Private Pensions to Preretirement Earnings Percentage Distribution of Nonagricultural Units UNMARRIED FEMALES 50 60 70 80 90 100 Chart I Ratios exclude the supplementary social security benefit for the wife Source US Joint Economic Committee Compendium, Part B, 254 CHART I. FOR MOST RETIREES, PENSION INCOME WILL BE LESS THAN HALF OF PAST EARNINGS SOURCE: "Aged Retirement Income Adequacy- The ratios charted for married males exclude the when the wife's benefit and earnings are included.) The fact that some workers have P/E ratios close That the ratios are somewhat higher for women THE FINDINGS: Of workers retiring before 1980, ap- EFFECT OF EARLY RETIREMENT Projected Ratio of Public and Private Pension Income to Preretirement Earnings Percentage Distribution of Nonagricultural Males 65 & OVER 0 10 20 Source Joint Economic Committee Compendium, Part I, p.167 CHART J. EFFECT OF EARLY RETIREMENT SOURCE: "Early Retirement' Trends and Pension TECHNICAL NOTE: Projections were made through a As part of a broad study of pension income adequacy in the future, preliminary findings are available to assess the effect of early retirement on the amount of wage replacement provided by pensions. Again, the P/E ratio is the ratio of the total of public and private pension income to average annual earnings during the 5 years prior to retirement. The data relate to married males who were age 45 to 60 in 1960. The projection introduces a moderate upward THE FINDINGS: The replacement ratios for men |