The epic retirement crisis for older Americans: The median family of retirement age has $12,000 in savings.

mybudget360.com / Apr 23, 2017

Given the discussion of 401ks and IRAs you would think that most Americans have a nice nest egg ready to support them into their margarita drinking days on the beach.  Yet like most dreams, the reality is very different.  Most Americans are broke.  The Economist put out some data highlighting that the median family of retirement age has $12,000 in savings.  In other words, one minor injury and you are bankrupt.  It is a troubling contrast to the image that is portrayed on television and throughout the media of the fully financially prepared family.  Life just doesn’t work out that way for most.  Unsuspected illnesses, job losses, stagnant wages, inflation, family changes, and student debt all throw a wrench into the plans of most.  What is also startling is that this drought in retirement savings is happening at a time when the stock market is near an all time high.  So what gives?

The crisis in retirement

The total stock market cap of the U.S. market is $27.35 trillion.  You would think with that amount, there would be plenty of prepared individuals.  The challenge is that most of this money is aggregated at the top 5 to 10 percent of the population.

Take a look at market caps around the world:

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