Scared Investors, No Retirement, & More
The 2008 bear market may have chased away a generation of investors, found a new survey by international consulting firm AlixPartners.
The August survey found that 49 percent of respondents who identified themselves as “previous investors” had either stopped or reduced their investing in stocks or mutual funds.
Another 26 percent said they “had no intention of investing” in stocks or funds over the next three years, while 27 percent were unsure whether they would invest again. Clarence Hahn of AlixPartners said investors are “cross, cautious, and confused” by the 2008 drop.
Too poor to retire
The number of American households ill-equipped to retire successfully is growing, according to the latest National Retirement Risk Index, which is maintained by the Center for Retirement Research at Boston College.
The index of those at risk increased to 51 percent of households from 44 percent in 2007. The biggest change was in younger households, the Center said.
Income slides
The median income of U.S. households declined in 2008 by the largest amount since 1967, says the U.S. Census Bureau.
The median was $50,303 in real, inflation-adjusted dollars, down 3.6 percent from 2007.
The Economic Policy Institute forecasts a similar decline in 2009.