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December 03, 2013 at 06:25 AM
Will the recent rebound in the stock market and housing prices be enough to save the nest eggs of those in the workforce?
According to the Center for Retirement Research (CRR) at Boston College, it may help, but not very much. Individuals will still need to work longer and save more. In a report issued today, “Will the Rebound in Equities and Housing Save Retirement?,” the CRR takes a look at the National Retirement Risk Index (NRRI) and finds that, as of 2010, even if households worked until age 65 and annuitized all of their financial assets, 53 percent were still at risk of not having enough money for retirement.
Since 2010, both the stock market and the housing market have made gains (45 percent and 6 percent, respectively). That fact, however, does little to help retirement savings. CRR states this is so because the increases in house prices have been modest and the growth in the equities market mainly benefits the top third of households.
Percent of households “at risk” at age 65 by income group
Essentially, CRR is saying that the reitrement landscape in 2010 was no better than it was in 2007. In fact, it may be worse.
