Work, Retire, Repeat: The Uncertainty of Retirement in the New Economy, by TeresaGhilarducci (University of Chicago Press, Chicago, 2024), pp. 260

The book Work, Retire, Repeat: The Uncertainty of Retirement in the New Economy by Teresa Ghilarducci discusses the modern retirement crisis in the United States. The book presents a combination of robust statistical analysis, anecdotes and historical context. The author challenges the prevailing assumption that working longer is a solution to retirement insecurity. Her book argues that the current retirement system is broken with insecurity and inequality and proposes a solution to fix the system – the ‘Gray New Deal’. The main thesis of the book is that the erosion of the defined benefit (DB) pension system and the shift toward a ‘do-it-yourself’ retirement model based on defined contribution (DC) plans have failed to provide financial security for most retirees. Ghilarducci critiques what she calls the ‘working-longer consensus’ – the idea that older Americans should delay retirement to improve their financial security. She argues that this approach fails to solve the retirement crisis and exacerbates inequality, particularly for low- and middle-income workers. Through a well-structured narrative combined with a thorough analysis of empirical studies, Ghilarducci makes a compelling case for why retirement policies need to be reformed and offers some, albeit limited, solutions to address these challenges. The book is divided into three parts. Part I discusses the erosion of retirement. It sets the stage by explaining how the retirement income system has evolved into a deeply unequal and insecure one. Ghilarducci provides a review of the historical context of the retirement crisis. She argues that the gradual disappearance of DB pensions has left most Americans with insufficient retirement savings. The current DC system is referred to as a ‘do-it-yourself’ system as individuals are responsible for managing their retirement accounts. Ghilarducci's argument is that bad retirement policies are pushing people to work longer, not out of choice. She highlights the stark inequalities that exist, with lower-income workers being forced to work longer and experiencing shorter retirements compared to their wealthier counterparts. This section paints a very bleak picture of the American retirement landscape, in which most workers are ill-prepared for retirement. Part II discusses retirement insecurity and the hidden costs of working into old age. Ghilarducci points to health impacts, diminished quality of life, and the erosion of bargaining power among older workers. While these are not novel findings and viewpoints, these costs effectively support Ghilarducci's arguments of undesirable outcomes if people are forced to work until old age. The DC model has gradually replaced the DB system, which benefits employers and the government. The DB system helped people transit more smoothly into retirement and minimise uncertainty. In contrast, the DC system accrues benefits indefinitely and therefore induces people to work longer, fearing that they have not accumulated enough to fund their retirement. However, the author reports statistical evidence showing that working longer does not necessarily improve retirement security and equity and calls for rethinking the advice on working longer. The statistics presented are striking. Her analysis shows that longevity gains have been uneven. While well-off individuals can choose to work longer or retire at their leisure, poorer workers are often forced to continue working in low-paid, low-status jobs that take a toll on their physical and mental well-being. The result is a stark picture of inequality and economic precarity in retirement. In the final part of the book, Part III, Ghilarducci proposes solutions to the retirement crisis, the Grey New Deal. Her ‘Gray New Deal’ envisions enhancing employability for older workers and improving pension design to reduce the economic insecurity retirees face. However, this section is where the book falls short. While Ghilarducci effectively identifies the problems with the current retirement system and critiques the ‘working-longer consensus’, her proposed solutions lack the depth and specificity needed to be truly transformative. In other words, the proposal is somewhat shallow as it lists out some ‘whats’ but leaves the ‘hows’ unclear. The proposed redesign of the US pension system has features that have been implemented by the key pillars in other markets, including Australia and the United Kingdom. The proposed compulsory retirement saving plans with contributions by employers and employees are similar to the Australian system; however, the central management of pension savings is the model in Singapore and Hong Kong. The interesting proposal for the government to match contributions for low-income savers is similar to the current Australian government's superannuation co-contribution policy. The book would benefit from a few case studies covering a more in-depth analysis of how such features have worked well for other markets. The book could also benefit from several further improvements. Firstly, a background description of the major pillars of the current US pension system in Part I would provide valuable context, especially for an international audience unfamiliar with the system. Secondly, a comprehensive understanding of retirement income adequacy and sustainability would be essential, including information about the level of other non-pension assets accumulated by a typical household, such as financial assets, home ownership, investment property and other assets they can access to provide for retirement. Thirdly, while the book primarily focuses on the baby boomers, it would benefit from a more thorough exploration of how these retirement challenges might affect younger generations, such as Gen X and Millennials. Although they are briefly mentioned, a deeper analysis of how these cohorts should navigate retirement, with time on their side, would offer a more comprehensive view of the future retirement landscape. Lastly, some sections repeat similar points, particularly around certain statistical evidence. Streamlining these discussions would enhance clarity and keep the reader more engaged. Despite these limitations, Work, Retire, Repeat is a valuable contribution to the literature on retirement. Ghilarducci's writing is engaging and accessible, making complex statistical analysis understandable to a wide audience. She uses anecdotes and case studies to bring her arguments to life, such as the story of the TikTok video that highlights the plight of older workers or the virtual party to present the Health and Retirement Survey statistics. This mix of storytelling and data makes the book an enjoyable read for academic audiences, policy-makers and general readers interested in the future of retirement. Academic readers may also note that Ghilarducci critiques how some researchers may have misinterpreted findings due to sample selection bias or flawed assumptions in their research design. This adds valuable depth, prompting scholars to reassess existing research. In conclusion, Work, Retire, Repeat is thought-provoking. The book succeeds in raising important questions about the sustainability of the current retirement system and the need for reform.