The Long Road to Retirement Recovery

Source: Ilana Boivie, National Institute on Retirement Security, June 29, 2009

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.

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