When a crisis ends, not everyone recovers equally. And in the wake of the 2008 financial crisis, though the stock market has long recovered, there is an important group that was hit badly – and hasn’t bounced back.
This is Americans nearing retirement.
People aged 50-64 are supposed to be building wealth and getting ready for retirement. But the Congressional Budget Office released a new report on wealth last Thursday that found that median family wealth dropped for Americans aged 50-64 from around $250,000 in 2007 to just under $200,000 by 2010—and then, troublingly, continued to fall to around $150,000 in 2013. That’s a 40 percent drop in six years.
Americans aged 65 and older saw a smaller drop in the wealth during that period, closer to 10 percent, while those aged 35-49 saw a significant drop from 2007 to 2010 that has leveled off since. Americans younger than 35 typically have little wealth.
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It's no mystery. These might have something to do with the 50-64 set's dropping nest egg values:
ReplyDeleteObamacare, higher taxes, food prices up 30%, college prices up
40% with cosigned college loans at usurious interest rates, property and business insurance costs up, children living at home longer, stagnant wages, job losses, stock market downturns and investment failures, decreased home ownership, etc.
Women won't settle for wealth building because that would require saving money.Any loose change is devoted to a trip somewhere or a new outfit,and when a woman is retired she gets bored.All of us guys know how expensive getting them un bored is,don't we? Bachelors can build wealth.Married men not so fast.
ReplyDeleteExactly 12:59. !
ReplyDelete12:59 - covered it all, thank you, no other comments are necessary.
ReplyDelete"Americans younger than 35 typically have little wealth."
ReplyDeleteWhen they finally wake up from their social media/phone trance - it will be to late!
Me? Just continuing my finishin in the Assawoman Bay, waiting for another TGIF to roll up my way!!!!
Only 4 more days until TGIF!!!!!!!!!!!!!!!!!
My Maryland state retirement gave me a whopping 80 cent raise this fiscal year...yes, eighty cents! I can"t decide just how to spend it all. I used to like you Gov. Hogan.
ReplyDeleteYup my friend he lied to us. The raise was a slap in the face I couldn't believe it. Quote " Maryland retirees are the backbone of our state and I will take care of them". Liar.
DeleteNo one could have possibly seen this coming.
ReplyDeleteNOT!
It's useless if your other half takes it in a divorce..then your mandated to work until you die broke , while they sit on their ass and get paid
ReplyDeleteHere comes another group that can whine they have to live on Social Security. No one was supposed to live on SS, it was to add to what you saved. They we have to give them every discount possible, why?
ReplyDeleteEveryone forgot about the many Wall Street investment bust on the 401K plan. Hell, most job don't pay enough for a good investment.
ReplyDeleteHigh cost of life insurance, car insurance, medical insurance, home owner insurance, flood insurance, gas prices during the holiday no pay raises, low wages, payroll deduction taxes; etc. etc. etc. I better get my social security.
ReplyDeleteBasically anyone born after 1960 has been royally screwed!!!!!
ReplyDeleteWe will all be working the rest of our lives. I don't believe my 401K, Pension or Social Security will be there when I retire. I would start hiding money in mason jars, but I don't think the paper money will be worth squat when the dollar finally collapses.