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.