In response to Senator Bernie Sanders and economist Teresa Ghilarducci’s claims about the U.S. retirement system, it is argued that their arguments are based on inaccurate data. Despite alarming statistics about the financial state of older Americans, it is important to use accurate data to assess the effectiveness of the retirement system in the United States. Claims made by Sanders and Ghilarducci, such as nearly half of Americans approaching retirement having zero savings and high poverty rates among seniors, are refuted by recent research.
The Current Population Survey (CPS) has been a major source of data used by Sanders and Ghilarducci to support their claims about the state of retirement in the U.S. However, a groundbreaking study by two Census economists in 2017 revealed that the CPS significantly underestimates the true income of retirees. The study found that the median retiree’s income was actually 30 percent higher than reported in the CPS, and the elderly poverty rate was lower than believed. This research has been cited extensively by other academics and has led to a better understanding of retirees’ financial well-being.
Furthermore, the Census Bureau has continued to improve its data collection methods through the National Experimental Wellbeing Statistics (NEWS) project, which takes into account various sources of data to provide more accurate estimates of household income and poverty rates. These new approaches have shown that traditional surveys like CPS may not capture the full extent of retirement income, especially from private retirement plans. This raises questions about the validity of claims made by Sanders and Ghilarducci based on outdated or incomplete data.
Based on the more accurate data available, it is suggested that Sanders’ claim about the percentage of seniors living on low incomes is likely incorrect. Additionally, Ghilarducci’s assertion that senior poverty rates have remained stable over the past 30 years is also challenged, as recent studies have shown a significant reduction in the risk of poverty among older Americans. These new findings present a different narrative about retirement in the U.S. than what is often portrayed in the media or by policymakers.
It is argued that Sanders and Ghilarducci, as prominent figures in the retirement policy debate, have a responsibility to use accurate and up-to-date data in their arguments. Despite their expertise in retirement issues, they have cited data that have since been proven to be inaccurate or incomplete. This raises concerns about the quality of the retirement debate and the need for better information to inform policy decisions. As researchers continue to refine and improve data collection methods, it is hoped that future discussions about retirement in the United States will be based on more reliable and comprehensive data.
In conclusion, the claims made by Bernie Sanders and Teresa Ghilarducci about the U.S. retirement system, based on data from the Current Population Survey, have been called into question by recent research. The use of more accurate data has revealed a different picture of retirement in America, with lower poverty rates and higher incomes among older Americans than previously believed. It is important for policymakers and researchers to use high-quality data to inform discussions about retirement policy and to ensure that accurate information is used to address the needs of retirees in the United States.
