Many Americans are approaching retirement with little or no savings and a far-from-paid-off mortgage, relying on Social Security as their only income.
In a column for Fortune, macroeconomist Dean Baker reviewed data from the Fed’s 2013 Survey Consumer Finance (SCF). The survey of wealth showed that except the top 1% who are doing quite well, the majority of Americans have seen little or no gain since the last edition of the survey in 2010. Baker says that the recent gains in the stock market have mostly benefited the wealthy because they own most shares.
The dwindling next eggs of many Americans near retirement have been hit mostly by home prices that are still far below their peaks before the recession. For the majority of the middle class, the most valuable asset is the family home.
“This is a bad picture for the country as a whole, but it is especially bad news for those at the edge of retirement,” Baker writes.
“These families do not have time for an economic turnaround to improve their situation.”
Sources:
Close to retirement? Why America’s recovery is working against you
Image by CDC/ Judy Schmidt
Tags: family homes, home prices, mortgage, pay off mortgage, retirement debt, retirement savings, savings, social security
