Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Study: typical wealth at retirement
Old 06-04-2008, 12:05 AM   #1
Thinks s/he gets paid by the post
Htown Harry's Avatar
Join Date: May 2007
Posts: 1,508
Study: typical wealth at retirement

I came across this estimation of the $361,000 net present value of the assets held by an "average" retiree:


"This wealth snapshot highlights the extraordinary importance of Social Security, traditional pensions, and owner-occupied housing for typical near-retiree households today. Together, these assets comprise nearly four-fifths of wealth for middle quintile households on the verge of retirement."

The graph shows individual assets, not household assets. The full report, unfortunately only a page long, is at:

Observation / extrapolation: roughly 60% of current retirees will need to get by on a monthly income derived almost exclusively from SS and a relatively small pension.

Question: other than for comparative purposes, is there value in using the author's NPV calculation on a pension and SS to assess one's own financial readiness to retire?

BTW, there's a bunch more interesting policy articles at Urban Institute's Retirement Project at: The Urban Institute | Retirees / Seniors

Htown Harry is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 06-04-2008, 01:21 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Feb 2007
Posts: 5,075
Yes. SS is very important... so is medicare. If anyone believes otherwise, they need to study how it was before they existed. Now, people are living longer which increases the chance of poverty at an old age.

chinaco is offline   Reply With Quote
Old 06-04-2008, 09:19 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
Join Date: Aug 2006
Posts: 12,484
Save, save, save, save............
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)

This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Old 06-04-2008, 11:30 AM   #4
Moderator Emeritus
Martha's Avatar
Join Date: Feb 2004
Location: minnesota
Posts: 13,211
The article gives this breakdown:

"We examine financial assets, home equity, retirement accounts, vehicles,property, and businesses as well as the present value of individuals’ future Social Security and pension benefits.We show mean per adult holdings for the middle quintile of the wealth distribution (wealth for married or partnered couples is divided by two).Social Security and traditional pension benefits comprise a substantial share of wealth for typical near-retiree households (figure 1). Middle-quintile households have $151,000 in Social Security wealth per adult and $72,000 in pension wealth per adult. Together, Social Security and pensions account for
nearly two-thirds of their $361,000 in total wealth. At $61,000 per adult, owner-occupied housing is the next largest source of wealth for middle-quintile households. Retirement accounts, including individual retirement accounts and defined-contribution (DC) pensions, such as 401(k) plans, are $33,000 per adult."

Nearly half of the wealth is the present value of SS.

No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Vanguard Retirement Study REWahoo Other topics 4 03-02-2007 09:19 AM
Study: 43% won't have enough in retirement dex FIRE and Money 28 06-27-2006 08:09 PM
Study: 43% won't have enough in retirement retire@40 FIRE and Money 2 06-07-2006 10:57 AM
Another Study on Early Retirement maddythebeagle Life after FIRE 17 10-21-2005 05:48 PM
New Study: What People Spend in Retirement REWahoo FIRE and Money 4 01-29-2005 03:29 PM


All times are GMT -6. The time now is 10:15 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.