The Center for Retirement Research (CRR) at Boston College has released a new brief that finds Baby Boomers are even more at risk of not being prepared for retirement than was previously thought. Based on the Federal Reserve's 2010 Survey of Consumer Finances (SCF), which looks at household wealth every three years, the brief finds the following:
•the wealth-to-income ratio for 2010 was significantly lower as compared to prior survey years, covering the period 1983-2010
•people need higher incomes in retirement due to increased life expectancies, the shift to 401(k) plans, increased health costs, and lower real interest rates
According to the report's author, Alicia Munnell, Director of the CRR, "the sharp drop in the ratio of wealth to income for each age group in the 2010 survey is particularly alarming."
The full issue brief is available on the CRR website at http://crr.bc.edu/wp-content/uploads/2012/08/IB_12-15.pdf
The Society of Actuaries (SOA) has released a new report, Key Findings and Issues: Working in Retirement, focused on its 2011 Risks and Process of Retirement study. Among the key findings:
The July 2012 Working in Retirement report is available on SOA's website at http://www.soa.org/files/research/projects/research-key-finding-working-retire.pdf
The Government Accountability Office has released a 96-page report, Retirement Security: Women Still Face Challenges. The GAO notes that while women's access to and participation in retirement plans has improved over the past decade relative to men, women contributed to their DC plans at lower levels than did men. For those women in or near retirement, divorce, widowhood, or unemployment tended to have an adverse effect on retirement income security. The full report is available on the GAO's website at http://www.gao.gov/assets/600/592726.pdf.
AARP reports that many older Americans were hit hard by the mortgage crisis of recent years. According to AARP, as of the end of 2011, some 3.5 million mortgages of those age 50+ were under water. What's more, from 2007-2011, there were 1.5 million older Americans who lost their homes because of the economy. An overview and the full July 2012 AARP study, Nightmare on Main Street: Older Americans and the Mortgage Market Crisis, may be found at http://www.aarp.org/money/credit-loans-debt/info-07-2012/nightmare-on-main-street-AARP-ppi-cons-prot.html
Blog Author - Ken Felsher
With over 25 years of writing, editing, and research experience. I enjoy sharing with my readers my love of working with content on a variety of subjects.
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