The Federal Reserve released welcome data its June 2009 Flow of Funds report indicating that the economic situation may be stabilizing. Disposable personal income rose by $142 billion in the first quarter 2009 and by $358 billion since the first quarter of 2008.
But even so, the road to recovery will be a long one. Fed data also indicate that household net worth plummeted 16% in the last year. The massive financial losses will present significant challenges for retirees and near-retirees. Many will not have time to recover losses to their retirement savings accounts and housing values.