The WSJ did a nice survey of the coming US pensions crisis.
"The 401(k) generation is beginning to retire, and it isn't a pretty sight. The retirement savings plans that many baby boomers thought would see them through old age are falling short in many cases.
The median household headed by a person aged 60 to 62 with a 401(k) account has less than one-quarter of what is needed in that account to maintain its standard of living in retirement, according to data compiled by the Federal Reserve and analyzed by the Center for Retirement Research at Boston College for The Wall Street Journal. Even counting Social Security and any pensions or other savings, most 401(k) participants appear to have insufficient savings. Data from other sources also show big gaps between savings and what people need, and the financial crisis has made things worse."
All true; however, the situation will become even starker if inflation picks up and erodes the value of fixed income assets, which are often the bedrock of 401(k) retirement plans.
The financial crisis just keeps on giving.....
No comments:
Post a Comment