Retirees Are Doing Better Than You Think

[Common Sense Party]

WASHINGTON (Reuters) - ..."On average, more-recent generations of households have higher levels of resources to draw on in retirement than previous generations," said the study by the Investment Company Institute, a trade group. "Other measures also indicate improvements in retiree well-being. For example, the poverty rate among people aged 65 or older has declined from nearly 30 percent in 1966 to 9 percent in 2011." ... {snip}


To be sure, the ICI findings are in the aggregate, so not every retiree will be on more solid financial footing than his or her forebears. But the study shows that the money Americans have earmarked for retirement -- topping $18.5 trillion in the second quarter -- is substantially higher than at eras in the past, even when defined benefit plans are included. That figure peaked at $18.9 trillion in the first quarter of 2012, and fell when stock prices fell in the middle of this year.... {snip}


Households led by people of all ages had more retirement assets than ever, the study found. The average amount of retirement assets per U.S. household was $153,100 on June 30 of this year. Adjusted for inflation that is 2.7 times higher than in 1985 and 5.6 times higher than in 1975, the study said... {snip}


The folks at the bottom of the earnings spectrum might be better off than expected, because Social Security will make up a higher percentage of their income, says Holden. She predicts that those who will face the biggest challenges funding their retirements are the same people most challenged at funding their earlier years. "Folks who were vulnerable while working (either by being underemployed, unemployed, working part-time or retiring early for health reasons) will tend to remain vulnerable in retirement," said Holden.

I have to admit, this is surprising news, especially since I'm in the retirement industry, and we don't often hear cheery, upbeat reports. Obviously, every individual situation is different, but it is refreshing to hear that some Americans aren't doing as lousy as we usually think.

Full story here: http://finance.yahoo.com/news/stern-advice-retirees-doing-better-133601134.html;_ylt=AkGr97H9AftnZxiKps6jIrqiuYdG;_ylu=X3oDMTRmNTJ0ODY3BG1pdANGUCBGb2N1cyBvbiBMaWZlbG9uZyBJbnZlc3RpbmcEcGtnAzI2MjcxYTkyLTA4NzAtM2E5Yi04NTMwLWFmY2U2MTU1ZTI4MwRwb3MDMgRzZWMDTWVkaWFTZWN0aW9uTGlzdAR2ZXIDYjRkMjFjYWMtM2VmMy0xMWUyLWJmZmEtODRhMTA1MTgxZWQ2;_ylg=X3oDMTFpNzk0NjhtBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25z;_ylv=3