The National Retirement Risk Index (NRRI) measures the share of American households at risk of being unable to maintain their standard of living in retirement. The NRRI is constructed using data from the Federal Reserve's Survey of Consumer Finances. The Index results from comparing households' projected replacement rates—retirement income as a percent of pre-retirement income—with target rates that would allow them to maintain their living standard. The NRRI is produced by The Center for Retirement Research at Boston College (CRR) and is exclusively sponsored by Prudential.
According to the latest NRRI update, the percentage of households at risk of being unable to maintain their standard of living in retirement soared by 9 percentage points, from 44 percent in 2007 to 53 percent in 2010.
A Prudential summary of this research, "Planning for Retirement: Protecting Retirement Income Against Key Risks," highlights the reasons for Americans’ declining retirement readiness, including market volatility, low interest rates, and increased longevity. It also discusses ways Americans can protect retirement income from these risks.
The Prudential Insurance Company of America, Newark, NJ