2010 SCF Suggests Even Greater Retirement Risks

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.