Americans Really Are Without Hope for Retirement
Family incomes dropped 2.3%, 2001-2004. Inflation ran ahead of family incomes during this period. Yet price inflation was officially quite low -- around 2% per annum.
Americans are falling behind.
The average family's income was $70,700 in 2004. But this figure is highly misleading. It factors in what the rich make, and then divides by the number of families.
More relevant is median income: that income level at which half of the families earned more and half earned less. In 2004, this was $43,200, up 1.6% from the 2001 level.
It takes two working adult members to earn this, in most cases.
Median net worth grew by 1.5% to $93,100 from 2001 to 2004. Yet it had grown from by 10.3%, 1998 to 2001. This includes the value of housing, which is a consumer good.
About half of all American families have tax-deferred retirement programs. The median account totaled $35,200. This is less than one year's median income.
In other words, these people will be inevitably become wards of the State: Social Security. They have no retirement plan. They merely have an excuse for pretending to believe that they have a retirement plan.
You can read the full report here:
I hope you are not so naive as to believe that you will ever be able to retire in comfort if you have under $2 million in net worth.
If you don't, you have two choices: (1) get it; (2) prepare for your post-retirement career.
Begin here: