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The most recent Pew survey underscores the relationship between recession losses and worries about retirement finances. Fully 45% of adults ages 35 to 44 say they are financially “worse off” now than before the recession. Among this group, more than two-thirds (68%) say they are not confident they will have enough income and assets to last through retirement. Only 30% of those in this age group who say they are better off now than before the recession express similar worries. During this decade of wild market swings, ownership of stocks and retirement accounts, such as 401(k) and thrift accounts, fell among most age groups. The declines were greatest among those ages 35 to 44. The proportion of adults in this age group who directly held stocks declined by nine percentage points from 2001 to 2010, with half of this drop occurring before 2007. In contrast, the share of adults 65 and older who directly held stocks declined only three percentage points from 2001 to 2010, from 21% to 18%.The proportion of 35- to 44-year-olds who held stocks indirectly through retirement accounts also disproportionately fell by nine percentage points, about double the decline among those younger than 35 or between 45 and 54 years old (four percentage points for both groups).As a consequence, those in the 35 to 44 age group have benefited less from the rapid increase in stock prices since 2009 because they were less likely than their older counterparts to own stock and retirement accounts.The Pew report is based primarily on data from two different sources: Pew Research Center surveys and the federal Survey of Consumer Finances. Findings from the latest Pew Research survey are based on telephone interviews with a nationally representative sample of 2,508 adults conducted July 16 to 26, 2012. The full poll findings are here.
The most recent Pew survey underscores the relationship between recession losses and worries about retirement finances. Fully 45% of adults ages 35 to 44 say they are financially “worse off” now than before the recession. Among this group, more than two-thirds (68%) say they are not confident they will have enough income and assets to last through retirement. Only 30% of those in this age group who say they are better off now than before the recession express similar worries.
During this decade of wild market swings, ownership of stocks and retirement accounts, such as 401(k) and thrift accounts, fell among most age groups. The declines were greatest among those ages 35 to 44. The proportion of adults in this age group who directly held stocks declined by nine percentage points from 2001 to 2010, with half of this drop occurring before 2007. In contrast, the share of adults 65 and older who directly held stocks declined only three percentage points from 2001 to 2010, from 21% to 18%.
The proportion of 35- to 44-year-olds who held stocks indirectly through retirement accounts also disproportionately fell by nine percentage points, about double the decline among those younger than 35 or between 45 and 54 years old (four percentage points for both groups).
As a consequence, those in the 35 to 44 age group have benefited less from the rapid increase in stock prices since 2009 because they were less likely than their older counterparts to own stock and retirement accounts.
The Pew report is based primarily on data from two different sources: Pew Research Center surveys and the federal Survey of Consumer Finances. Findings from the latest Pew Research survey are based on telephone interviews with a nationally representative sample of 2,508 adults conducted July 16 to 26, 2012. The full poll findings are here.
Kristen Heinzingereditors@plansponsor.com