This study estimates the adequacy of retirement wealth of pre-retirement households using a 1995 national sample of households. Retirement wealth is projected using planned retirement age and portfolio allocation. Retirement needs are estimated from expenditure functions, and 52% of the households were adequately prepared. Households that spent less than income were much more likely to be adequately prepared for retirement than similar households that spent at least as much as income. Planned retirement age had a large effect on adequacy, but household income had a moderate independent effect on adequacy. Key Words: Life cycle model, Retirement needs, Retirement planning, Retirement wealth adequacy, Survey of Consumer Finances

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