Will the Rebound in Equities and Housing Save Retirement?

Alicia H. MunnellAnthony Webb Rebecca Cannon Fraenkel

IB#13-17

The brief’s key findings are:

  • The 2010 National Retirement Risk Index showed that 53 percent of households will not be able to maintain their standard of living in retirement.
  • But equity and house prices have both increased since then.
  • Interestingly, updating the asset values only reduces the Index to 50 percent because:
    • the rise in house prices has been relatively modest in real terms; and
    • the more robust growth in stocks mainly benefits the top third of households.