How much income is enough? Measuring the income adequacy of retired persons using a survey based approach.

This paper uses survey data and a new method proposed by Dutch social scientists to estimate minimum income amounts and income equivalence scales for retired individuals and couples. The method is based on responses to survey questions about the amount of family income needed to achieve various levels of living. The minimum income amounts for retired families obtained using this method do not differ much from comparable official measures of income adequacy. The equivalence scales obtained using this method, however, do differ from official scales and indicate a need to target greater resources to retired persons living alone.