Social Security benefits are helping to narrow the gap between the haves and have-nots who are approaching retirement. But they don’t go far enough.
That’s according to new research from The New School Schwartz Center for Economic Policy Analysis in New York.
The analysis took a look at one age group in particular — those 51 to 56 years old. Those workers are often on the brink of retirement, even if it’s not by choice, according to Teresa Ghilarducci, professor of economics at The New School.
Many people stop working around age 56 or 57, Ghilarducci said, especially those in blue collar jobs that are more physically strenuous.
At ages 51 to 56, median Social Security wealth amounts to $81,900, compared to the $67,000 workers have accumulated in their employer-sponsored retirement plans. (The median is found in the middle of a list of numbers.)
Low-wage workers — those with the lowest 20% of earnings — have no retirement savings at all. And high-wage workers — those with the…