Saving more or saving less? Retired folks usually describe themselves as being on a fixed-income. Usually, it is the three-legged retirement stool: Social Security, personal savings and a pension. Sometimes that third leg is not a fixed pension benefit, but distributions from a 401(k) plan or an IRA account.
Former Presidential adviser, Barry Bosworth of the Brookings Institute has written A Decline in Saving: A Threat to America’s Prosperity. The Financial Security Project at Boston College has posted a brief video of Bosworth expounding in his work.
If I’m hearing Bosworth right, he is saying that retirees better start saving again because their future may become a little lean. Listen for yourself at the FSP.BC.EDU website.