From Marketwatch.com:
Many people are also in terrible financial shape for their retirement.
The Boston College Center for Retirement Research has just updated its “National Retirement Risk Index,” a measure of just how many people can expect to be financially comfortable in retirement.
It doesn’t make for happy reading.
According to Boston College, based on current projections, about half the country is at risk of being unable to maintain their standard of living in retirement.
Among low-income workers that rises to 60%. But it’s 40% even among the higher-income workers.
The picture has improved a bit since 2010, of course, as the economy has recovered somewhat from the financial crisis. But it remains worse than it was in 2007.
One of the stark issues that comes out of the report is how little the stock market boom has helped.
As the Boston College researchers note, citing data from the Federal Reserve’s 2010 Survey of Consumer Finances, most people don’t own many stocks. Equities account for just 17% of the wealth of high earners, 6% of middle earners and 2% of low earners.
Far more important is the value of housing — which has recovered much less dramatically than the stock market....
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Link: http://www.marketwatch.com/story/our-next-big-crisis-will-be-a-retirement-crisis-2014-03-03
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