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.