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ABSTRACT
This commentary provides background on the current state of American retirement, highlights recent efforts to reform retirement policy, and predicts what to expect under President Donald Trump. Retirement has not been a major focus of national policy makers in recent years. Early actions during the Trump administration to undo Obama administration policies may make it more difficult for individuals to save for retirement. While it is impossible to predict the future with any certainty, long-standing trends and recent political developments suggest that major action will not be taken during the Trump presidency to boost retirement security.
Notes
1. This joint life annuity was calculated using Thrift Savings Plan (TSP; Citation2017). The assumptions made include that the household in question includes two people aged 67; that the interest rate offered is the current TSP annuity interest rate of 2.375%; that payments increase to account for inflation; and that the annuity provides a 50% spousal survivor benefit. The figure stated here refers to the amount received upon retirement, which will increase annually in nominal terms as adjusted for inflation. Note that the monthly payment amount would be higher if the household were assumed to have just one member or if interest rates were to rise in the future. In addition, the initial payment amount would be higher if the household did not choose to have payments adjusted for inflation. In that instance, however, the purchasing power of the benefit would decline over time.