Monday, June 11, 2012

American Wealth Plunges

The latest update on the wealth of American households was released this afternoon, and the numbers are shockingly bad. Median household net worth was just $77,300 in 2010, according to the Federal Reserve Board, which fields the Survey of Consumer Finances every three years. Between 2007 and 2010, median household net worth fell 39 percent, after adjusting for inflation.

The net worth of American households has fallen to a level not seen since 1992. This is especially troubling because, as the large baby-boom generation approaches retirement, the demographics alone should have boosted median net worth to a record high. Here is net worth by age of householder in 2010, and percent change since 2007 after adjusting for inflation...

Total households: $77,300 (-39%)
Under age 35: $9,300 (-25%)
Aged 35 to 44: $42,100 (-54%)
Aged 45 to 54: $117,900 (-39%)
Aged 55 to 64: $179,400 (-33%)
Aged 65 to 74: $206,700 (-18%)
Aged 75 or older: $216,800 (-3%)

Source: Federal Reserve Board, Federal Reserve Bulletin, Changes in U.S. Family Finances from 2007 to 2010: Evidence from the Survey of Consumer Finances

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