Many Americans are nearing retirement with only Social Security to support them and a mortgage that is far from paid off - and the situation might be getting worse. https://youtube/watch?v=W79nCtz7u2Y According to Dean Baker, co-director of the Center for Economic and Policy Research, the nest egg that many could once rely on when they sold their homes and downsized has now vanished in a lot of cases. In a column for Fortune, Baker noted that because home prices are still considerably below their 2007 peaks, the U.S. middle class has had no comparable gains in their household wealth during the current recovery. This is a bad picture for the country as a whole, but it is especially bad news for those at the edge of retirement, he wrote. These families do not have time for an economic turnaround to improve their situation. They must rely on the wealth they have accumulated to date to support them in retirement, and that is it. This is not a pretty picture. Federal Reserve data show that if a typical U.S. family in the 55 to 64 age group took all their savings and used it to pay off their mortgage, they would still owe more than $50,000 on the median house. Chuck again. Yes, and when you look at the middle quintile of Americans in that age group they have only 54.6% of their homes paid off on average. In 1989, this group on average had equity equal to 81% of their house price. And for those of you, like I was, that need help figuring out what a quintile means, its A statistical value of a data set that represents 20% of a given population. And if you want to read the whole article click here: moneynews/StreetTalk/retirement-savings-Social-Security-Americans/2014/11/10/id/606418/?ns_mail_uid=14578862&ns_mail_job=1595350_11142014&s=al&dkt_nbr=u2dtjyn5
Posted on: Wed, 24 Dec 2014 11:27:48 +0000
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