Americans have not been saving and investing enough to ensure they won’t outlive their money! Many will end up relying on Social Security or have to work longer (if they are able to). Americans are living longer so we all need to save more, especially while interest rates are near historic lows.
Charlie Bilello of Pension Partners recently wrote an excellent article regarding saving and investing which I’d like to share: What’s More Important: Saving or Investing?
Below is a second and more recent chart showing Median Net Worth by Age Group including primary residence, and without. The message is that home ownership typically yields a higher net worth for those who own. The chart below also shows that most are not saving and investing enough.
Both of these charts show how unprepared many are for their ‘golden years’. Most don’t save enough saved and catching up is hard to do without enough time. Others have most of their net worth tied up in their house but are cash poor. I recommend that you use these charts as a motivator to save more, buy a home, and invest for the long term.
Net worth with and without home equity
Wallet Hacks added this after the initial publishing but here’s something very eye-opening:
Link below: