The one-third drop in the S&P 500 index between year-end 2007 and 2008 raises concerns about
retirement security since Americans now hold more equities through their retirement plans.
Those near retirement will fare the worst because they have no time to recoup their losses. Midcareer
workers will fare better because they have more time to rebuild their wealth. They may
even gain income if they buy stocks at low prices and get above-average rates of return. High-income
groups will be the most affected because they are most likely to have financial assets and
to be invested in the stock market.