LIMITED TIME OFFER: Get up to 12 months of guaranteed rent.

A Snapshot of the Current US Retirement Market

gen x income gapAs of Sept 30, 2010:

  • Total U.S. retirement assets: $16.6 trillion (up 6.1% from $15.6 trillion in 2Q2010)
  • 60% of households nearing retirement age have 401(k)-type accounts
  • Retirement savings account: for 36% of all household financial assets in the United States
  • 49 Million Households Own IRAs
  • IRAs hold $4.5 trillion (up from $4.2 trillion at the end of 2Q2010)
  • Most IRAs are held as traditional IRAs

By 2015, it is estimated that IRA Assets will reach $7.2 trillion – this includes today’s assets, Roll overs, contributions, market appreciation, and return distribution.

On February 19, 2011, Wall St. Journal reported on retirement income short falls:

  • The median household of age 60-62 has less than one-quarter of what is needed in a 401(k) account to support the standard of living in retirement
  • Many people are postponing retirement (some into their 70-s), following cost saving measures and other bigger sacrifices, and taking bigger risks with their current investments
  • A 401(k) also requires steady, significant savings
  • Unlike corporate pension plans, which are guaranteed by the U.S. government, 401(k) plans have no such backstop
  • As a median measure estimate, Social Security will provide as much as 40% of pre-retirement income and the rest thru income could contribute to reducing the retirement income gap.

(Sources: Investment Company Institute, FRB, NAGDCA, ACLI, McKinsey, Cerulli, WSJ and IRS)

image credit: Fidelity

No Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

Need Help Investing?

We have experienced real estate investment professionals standing by to answer questions and help you with next steps.

Share this

Like what you see? Share it!

LIMITED TIME – November Only

rent-guarantee

HomeUnion will guarantee your rental income for up to 12 months. You can rest assured that whether or not the property is occupied, you will earn cash flow until your property is leased.

Find Out More