Derived from 2011 US Census data (and reported here in the Motley Fool), the self-reported median net worth over time--if accurate--suggests a population simply not prepared for retirement, and heavily reliant on about $150k of home equity by retirement age. Making this statistic worse is the tendency to overvalue one's homestead and the expense/difficulty of transitioning that real estate asset to usable, liquid assets when need arises. Non-homestead median net worth is estimated at approximately $43,921 in the population between 65-69 years old. Assuming the average social security distribution of about $1333/month, somewhere around half of America is setting itself up to live on less than $20,000/year.
Jonathan L. R. Drewes is an attorney at Drewes Law, PLLC who defends against debt collectors and foreclosure. He can be reached by email at email@example.com.
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