Data Shows Alarming Pattern For Prospective Retirees

Data from the Center For Retirement Research shows an alarming trend in wealth accumulation and retirement preparedness among Americans. The chart, which contains data going back to 1983, shows a stable pattern of wealth accumulation through the most recent survey in 2010. In 2010, accumulation of wealth dropped among most age groups due to the severe recession and unemployment crisis. The CRR suggests that even if the ratio of wealth to income returns to its historical norm, the fact that funding retirement is significantly more expensive than it used to be, means trouble for future retirees. In short, the CRR warns prospective retirees that having the same amount of assets as your parents won’t be enough to handle the rising costs of retirement. More here.

Retirement Costs Rise As Wealth Accumulation Slows

New data from the Center for Retirement Research at Boston College shows the pattern of wealth accumulation has remained virtually the same since 1983. That means, though expenses and life expectancies have gone up, people have approximately the same assets going into retirement that they had in 1983. In addition, the most recent recession has taken a staggering toll on the preparedness of baby boomers heading into retirement. Losses experienced in the real estate and stock markets were compounded by the need to dip into retirement savings to make up for the financial burden. These changes to the wealth-to-income ratio, which is a good predictor of how much income someone can replace once they retire, suggest that Americans have become increasingly less prepared for retirement over the past 30 years. More here and here.

Baby Boomers Face Financial Hardships Following Recession

According to a new AARP report, 80 percent of baby boomers who were unemployed in 2010 were still out of work late last year. The report, which surveyed boomers on their financial well being following the recent recession, discovered that Americans between the ages of 50 and 64 continued to struggle three years after the official end of the recession. Because older workers have less time to recover from a job loss, the recession was particularly difficult for salaried employees in their 50s and 60s. Even among those who were able to find work, less than half said they were back on track financially because of lost savings or having to take a job for less money. The survey’s findings highlight the economic struggle felt by millions of baby boomers whose retirement plans were changed or altered by the recent recession. More here and here.