Many U.S. households are not adequately prepared for retirement, according to a new report from the Federal Reserve that found 31 percent of non-retired respondents indicating they have no retirement savings or pension, including 19 percent of those ages 55 to 64.
In addition, nearly half of adults were not actively thinking about financial planning for retirement, with 24 percent saying they had given only little thought to financial planning for their retirement and another 25 percent saying they had done no planning at all. Of those who have given at least some thought to retirement planning and plan to retire at some point, 25 percent said they didn’t know how they will pay their expenses in retirement.
The Great Recession pushed back the planned date of retirement for two-fifths of those ages 45 and over who had not yet retired, and 15 percent of those who had retired since 2008 reported that they retired earlier than planned due to the recession. Among those ages 55 to 64 who had not yet retired, only 18 percent plan to follow the traditional retirement model of working full time until a set date and then stop working altogether, while 24 percent expected to keep working as long as possible, 18 percent expected to retire and then work a part-time job, and 9 percent expected to retire and then become self-employed.
In the new Report on the Economic Well-Being of U.S. Households, the
Overall, the survey found that as of
The outlook for the housing market among homeowners appeared generally positive, as many homeowners expected house prices in their neighborhoods to increase over the 12 months following the survey, with 26 percent expecting an increase in values of 5 percent or less and 14 percent expecting an increase in values of greater than 5 percent. Less than 10 percent of homeowners expected house prices in their neighborhoods to decline over the 12 months following the survey. Many renters seemed to express an implied interest in homeownership, as the most common reasons cited by renters for renting rather than owning a home were an inability to afford the necessary down payment (45 percent) and an inability to qualify for a mortgage (29 percent). Ten percent of renters reported that they were currently looking to buy a home.
The availability of credit was still perceived to be relatively low by some respondents in
Just over half of respondents were confident in their ability to obtain a mortgage, were they to apply. Experience and expectations with credit appear to vary by race and ethnicity. However, this effect is partially explained by other factors correlated with race/ethnicity and credit, such as education levels.
Among those with debt for their own education, those who failed to complete the program they borrowed money for were far more likely to report having to cut back on spending to make their student loan payments and that the costs of the education outweighed any financial benefits they received from the education. The amount of debt acquired, and the self-perceived value of the education, also varied by the type of institution attended.
The survey was conducted on behalf of the Board by GfK, an online consumer research firm. Data collection began
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