2010 SCF Suggests Even Greater Retirement Risks

Alicia H. Munnell

IB#12-15

The brief’s key findings are:

  • The wealth-to-income ratio for current workers is a good way to gauge their retirement preparedness.
  • During 1983-2007, these ratios were remarkably stable, which should never have been a source for comfort as the need for wealth increased due to:
    • rising life expectancy;
    • the shift to 401(k) plans;
    • increasing health care costs; and
    • lower real interest rates.
  • In 2010, the ratios dropped substantially, signaling even more serious problems ahead for future retirees.