The Impact of Guaranteed Retirement Accounts on the Retirement Crisis

Teresa GhilarducciMichael PapadopoulosAnthony Webb
Written By SCEPA

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Guaranteed Retirement Accounts (GRAs), proposed in the 2018 book Rescuing Retirement, are universal individual accounts funded throughout a worker’s career by employer and employee contributions and a refundable tax credit. If GRAs were implemented in 2018,1.5 million seniors would be saved from poverty or near poverty by 2025. This increases to 3.6 million seniors by 2035 and 8.1 million seniors by 2045.

  • If we do nothing to reform the current retirement system, the number of poor or near-poor people over the age of 62 will increase by 25% between 2018 and 2045, from 17.5 million to 21.8 million.

  • If the GRA were implemented in 2018, 8.1 million seniors would be saved from old-age poverty or near poverty by the year 2045.

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