Thursday, February 26, 2009

Retire? - Most Baby-Boomers Near Retirement Age Are Broke

Check the story at the link below to find out how little American baby-boomers near retirement age now have in assets.

Surprisingly, the median net worth with house equity is now only around $140,000. Now this is the median and not the average.

The average is much higher given that the top quintile of the age group has a high net worth. But once we get into the bottom 3 quintiles, the picture is pretty bleak.

Remember that this $140,000 median is for households headed by a babyboomer, so if the household includes a man and woman, the median net worth is approximately $70,000 per individual.

Here is the link to the PDF of the Study from which the newspaper story was taken. The Wealth of Baby Boomers Collapses
Note the items on pages 3 and 4, particularly the item about renters in two quintiles actuallly being better off than homeowners simply because during the so-called housing boom many homeowners became much poorer whereas the renters were better off.
Check out:

Happiness and Money in Retirement

Retirement Advice on the Retirement Cafe

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