A detailed analysis of household savings revealed that many older U.S. workers are unprepared for retirement — and that was the case before the economy crashed.
The analysis, called the 2007 Survey of Consumer Finances, was just released by the Federal Reserve Board this year, and it reveals detailed info about household savings, including:
- Nearly 30% of the households sampled in the study have no retirement wealth, and
- If people continue to sock money away at such low rates, even adding Social Security won’t come close to giving them the income they’ve become accustomed to while working, unless they’re in the lowest earnings bracket.
What’s worse: Older workers seem to think they’re doing OK. That suggests financial planning is a key non-cash benefit employers could provide.