Data at a Glance

The slumping stock market, falling housing prices, and weakening economy have serious repercussions for older Americans who are approaching retirement or already retired. Seniors have little time to recoup the values of their homes, 401(k) plans, and individual retirement accounts-all important parts of their retirement nest eggs. More and more older adults are working to bolster their retirement incomes, but the rising unemployment rate limits their prospects. This fact sheet examines the impact of the ongoing economic turmoil on retirement savings, home values, and retirement decisions.

People think of retirement security as balancing on a three-legged stool, with income from assets, private pensions, and Social Security as the legs. However, despite growing awareness about the importance of saving for retirement, many elderly people cannot rely on their financial assets. According to data from the 2004 Health and Retirement Study, lower-income adults age 65 and older rely less on income from assets and traditional defined-benefit pensions than their higher-income counterparts. Instead, older adults with lower income rely primarily on Social Security and public transfers for their retirement security.

A great way to assess how well adults have accumulated wealth is to look at their finances in the years shortly before they retire. We show wealth among households with an adult age 57–61 in 2004, using the Health and Retirement Study. This wealth snapshot highlights the extraordinary importance of Social Security, traditional pensions, and owner-occupied housing for typical near-retiree households today, which together comprise nearly four-fifths of wealth for middle quintile households on the verge of retirement.

Older adults' employment is attracting attention as many baby boomers approach traditional retirement ages. This fact sheet examines the benefits of working longer, the characteristics of today's older workers, and recent changes in older Americans' labor supply.

Older adults' employment is attracting attention as many baby boomers approach traditional retirement ages. This fact sheet examines employers' current attitudes toward older workers and the likely future demand for their services.