Americans are a staggering $6.6 trillion shy of the savings they need for retirement. That’s the figure arrived at by Boston College’s Center for Retirement Research in a report published Monday, Sept. 20, 2010.
To get there, the researchers made an interesting and highly optimistic set of assumptions: All retirees will take out a reverse mortgage. And they’ll put all their retirement savings into an inflation-protected annuity. Researchers also assumed none of the retirees would need health care or nursing homes, according to Agora Financial’s report on the study.
Even with these unrealistic assumptions, the shortfall still amounts to $90,000 per household for all Americans aged 32-64. Give or take a few hundred billion dollars.
The BC report helps put this disturbing fact in context: Unemployment among people age 55 and older is the highest on record–and double what it was at the start of the recession.