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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: CalculatedRisk who wrote (34764)	7/1/2005 6:55:45 PM
From: shades	Read Replies (3) \| Respond to of 306849

Another trend that is going to impact spending in the next decade: sptimes.com ...In the Employee Benefits Research Institute's annual retirement confidence survey this year, about 40 percent of workers 45 and older reported they had saved less than $25,000. The institute's statistics show about 10 percent of workers 21 to 64 have an IRA as their only retirement savings plan, 22 percent have only a workplace account such as a 401(k) and 9 percent have both. The rest have neither. Other retirement research produces similarly grim numbers. Fidelity Investments says the typical working household of adults 41 to 54 (prime boomer years) has saved $30,000 toward retirement and 14 percent haven't saved anything. Of course, some boomers do have substantial IRAs and 401(k)s. Workers in their 50s who had spent 20 to 30 years at the same company had an average 401(k) balance of about $157,000 at the end of 2003, according to the research institute. Calculated I do not consider a 55 year old who has had a good 30 year job with only 157K to be in good shape and definitely this person is the minority of current job's in this new age of WAL-MART part timers. Having invested for 30 years in a good index fund should have given them closer to 300K I feel. As these boomers get a little older and not able to work as productively, they will have to seriously curtail spending to have any hope of buying even a taco from the chihuahua. That the average 50 year old household with 2 working adults only has about 30K is a sad state of affaris. These numbers are very concerning to me.