� Overall, 25–27 percent of Baby Boomers and Gen Xers who would have had adequate retirement income under return assumptions based on historical averages are simulated to end up running short of money in retirement if today’s historically low interest rates are assumed to be a permanent condition, assuming retirement income/wealth covers 100 percent of simulated retirement expense. � A low-yield-rate environment may have an extremely large impact on retirement-income failure rates when viewed in isolation. However, the impact is muted somewhat when included as part of the entire retirement portfolio (e.g., Social Security benefits, possible defined benefit accruals, and net housing equity). � There appears to be a very limited impact of a low-yield-rate environment on retirement income adequacy for those in the lowest- (pre-retirement) income quartile, given the relatively small level of defined contribution and IRA assets and the relatively large contribution of Social Security benefits for this group. However, there is a very significant impact for the top three income quartiles
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