Entitlement Spending: Observation from Previous Slide

Entitlement Spending: Observation from Previous Slide e Clearly, lower interest rates have allowed Americans to borrow more and save less. But given the high correlation between rising entitlement income for beneficiaries and declining savings rates, one might also wonder if Americans feel less compelled to save money as they feel that they can depend on the government to give them money. Note: Savings rate is the amount of money saved divided by income after taxes. KP i USA Inc. | Income Statement Drilldown 91 Entitlement Spending: Social Security Now Provides 37% of an Average Retiree’s Income, Up From 31% in 1962 Sources of Retirement Income for Average Americans, 1962 - 2008 ——— Personal Earnings* —— Social Security ——Pensions + IRAs + 401 (k)s** % Total Pension 0% . T T T T T T T T T T T T T T T 1962 1968 1974 1980 1986 1992 2004 Note: *Personal earnings include income from investment & assets + salaries; ** occupational pensions include regular payments from private pensions, government employee pensions, IRAs, 401(k)s. Source: Social Security Administration Office of Retirement and Disability Policy KP www.kpcb.com USA Inc. | Income Statement Drilldown oO N HOUSE_OVERSIGHT_020887