Despite
improvements since 2009. worries about retirement finances still vex many
Americans, especially those with less education and low income.
By Chad
Brooks Wed, Oct 24 2012
Despite the
economic improvements made since the end of the Great Recession in 2009, more
Americans are worried about their retirement finances today than they were
then, new research shows.
The study by
the Pew Research
Center revealed that nearly 40 percent of adults are not confident
they will have income and assets for their retirement, up 13 percentage points
from three years ago.
The research
shows the decline in confidence is greatest among Americans with less
education and those with annual family incomes between $30,000 and $74,999.
When examined by race, the study found that Hispanics are slightly more
confident than Caucasians and African Americans that they'll have enough money
to last through their retirement.
In a shift
from previous years, the research found that that concerns about retirement
financing are now more heavily concentrated among younger and middle-aged
adults than those closer to retirement age.
Specifically,
more than half of those surveyed between the ages of 36 and 40 are not
confident that their income and assets will last through the end of their
working career, while less than 35 percent of those between 60 and 64 feel the
same way.
An analysis
of Federal Reserve data suggests that a reason that retirement concerns have
surged among adults in their late 30s and early 40s is that the average wealth
of this group has fallen at a far greater rate than for any other age group
over the past 10 years.
Led by
declines in the value of their homes, the research found that the median wealth
of adults ages 35 to 44 was 56 percent lower (in inflation-adjusted dollars) in
2010 than it had been for their same-aged counterparts in 2001. At the same
time, those closer to retirement, between the ages of 55 and 64, saw just a 22
percent drop in wealth.
Also
contributing to the loss in wealth among adults in their late 30s and early 40s
has been their failure to benefit from the rebound in stock prices that
began after the recession. The data shows that a larger share of that age group
dropped out of the stock market when things got bad and were on the sidelines
as prices began to increase.
The study was
based on Pew Research Center surveys of more than 2,500 U.S. adults and the
Federal Reserve Board of Governors and the Department of Treasury's triennial
Survey of Consumer Finances.
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