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July 14, 2010

Study: Americans better prepared for retirement

The latest "retirement readiness" study from the Employee Benefit Research Institute got a lot of coverage yesterday, The bad news justifiably got most of the press. Many, many Americans aren't saving enough for retirement. But there was some (relative) good news buried in the report. The portion of boomers and GenXers "at risk" of using up their retirement resources is generally lower than it was in 2003, when EBRI did a previous study.

The graph tells the tale. The red bars are the people who aren't saving enough in 2010; the blue bars are from 2003. Each group -- early boomers, late boomers and Xers, is sorted into income categories from low to high. 2003 is not a bad point of comparison because it was a similar stage in the economic and financial cycle. Ie., the stock market wasn't doing so great then, either. EBRIstudy.gif

Posted by Jay Hancock at 6:07 AM | | Comments (3)
Categories: Finance
        

Comments

Thanks for the link Jay.

But as I have no intention of actually reading through that 25 page document anytime soon (I did DL it though)... have you gleaned the raw dollar numbers referred to as being "enough" for retirement?

It would be good to know their benchmarks.

In the mid 90's when I first started getting serious about the subject my own personal estimates were $500,000 in mixed assets at age 65; plus SSA and Medicare.

In the years since then that raw number has grown... with today being closer to $800,000.

These are minimum levels in my view for a couple to have the income needed to maintain a fully paid for modest home and a not especially adventurous or travel heavy lifestyle... and an expectation of modest provision for survivors or grandkids.

As the article points out, retirees have less in savings. Boomers are rethinking how, when and where to retire. Lake Weir Living (LWL) in Central Florida has evolved the active adult/retirement lifestyle concept to answer the needs of today's Boomers. Boomers can still have fun and play hard. LWL, is a "Toy-Friendly" Residential Community (8 miles from The Villages & 55 miles to Orlando), for Boomers frustrated with oppressive HOA restrictions & fees. LWL offers new custom-homes from the $90s with no HOA and toy-fitted garages for "Toys" such as boats, motorcycles, RVs, and more. Visit our Blog: http://www.lakeweirlivingblog.com

The bad news justifiably got most of the press. Many, many Americans aren't saving enough for retirement. But there was some (relative) good news buried in the report. The portion of boomers and GenXers "at risk" of using up their retirement resources is generally lower than it was in 2003, when EBRI did a previous study.

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About Jay Hancock
Jay Hancock has been a financial columnist for The Baltimore Sun since 2001. He has also been The Baltimore Sun's diplomatic correspondent in Washington and its chief economics writer. Before moving to Baltimore in 1994 he worked for The Virginian-Pilot of Norfolk and The Daily Press of Newport News.

His columns appear Tuesdays and Sundays.
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