So This is What The Recovery is Made of…

A month ago, a poll of 1,000 Americans revealed that three out of four people have less than a six month cushion in savings, while almost a third have no savings whatsoever.

Now drops the other shoe.

Washington Post, Oct. 23, 2013

A majority of Americans with 401(k)-type savings accounts are accumulating debt faster than they are setting aside money for retirement, further undermining the nation’s troubled system for old-age saving, a new report has found.

Three in five workers with defined contribution accounts are “debt savers,” according to the report released Thursday, meaning their increasing mortgages, credit card balances and installment loans are outpacing the amount of money they are able to save for retirement.

Roughly 60% of Americans are digging deeper into debt faster than they are saving for retirement.  So, this “recovery” which has been anemic by any standard, has largely been fueled by debt.

 

 

 

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One Response to “So This is What The Recovery is Made of…”

  1. Joan Landes Says:

    Guilty as charged! Things are finally looking up since the twins moved out, though. That gives us 15 years to sock enough away for 30 years…. Hmmm.

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