Recently I saw a news story that reported that more than half (54%) of retirees in the U.S. reported that they have less than $25,000 in financial assets, such as bank savings, CDs, mutual funds or retirement accounts. This number was up from 42% of seniors in 2006 reporting the same figure. We have seen for some time that a high percentage of younger Americans in particular were having trouble saving money - for retirement, or any other purpose - because of a slack job market, student loans and other debt, and a low focus on retirement. (This recent survey also found that 56% of all workers reported having less than $25,000 in financial assets.) But to see that so many older Americans have little savings to show for decades of work is unsettling, and worrisome for younger workers, who are likely to receive fewer pensions and an increasingly depleted Social Security system.
David A. Pace, CFA
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