A recent study by The Pew Charitable Trust concluded that the current generation has little to look forward to in achieving the “American Dream”. In fact, fewer that one-third of Americans can expect to exceed the level of wealth and income achieved by their parents. This depressing study, entitled “Pursuing the American Dream” probably only confirms what many young Americans already know. A slow economy, burdened by excessive amounts of debt, high unemployment, low wages and rising costs of living are causing many to think that the “American Dream” has become the “Impossible Fantasy”.
To get an idea of where you stand compared to the rest of America, the following charts are provided for your consideration.
The average median family income in America is about $50,000 which in most states is barely enough to survive on. If you are in the top quintile, you are definitely doing something right.
The figures cited above include equity in a home which should probably be excluded for a more accurate picture of where one stands. Home equity can disappear in a heartbeat in a housing downdraft and in any event cannot be readily accessed for emergencies due to restrictive mortgage lending practices.
Based on the net worth figures shown above, most Americans are woefully short on the amount of wealth necessary to comfortably retire. Is it any wonder that many Americans plan on working past the age of 70?
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