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Published in:
2016 | OriginalPaper | Chapter
The Looming Retirement Shipwreck
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Some households have experienced sharp wealth gains, and many others have seen no or only small wealth increases over the past few decades as rising household risk exposure has impeded savings. But, this growing wealth gap by itself does not tell the whole story. Wealth is a store of future income that people can rely on when they no longer have income from work, for instance, when they retire. Rising wealth inequality then means that a growing share of households will likely not be able to maintain their standard of living in retirement and hence will have to make substantial spending cuts or significantly delay retirement.