Big Income Losses for Those Near Retirement
By CATHERINE RAMPELL
Another reason, besides the housing bust, that Americans nearing retirement age may have suffered most
from the financial crisis: The typical American 55 to 64 years old has a
household income almost 10 percent less than it was when the recovery
officially began three years ago, according to a new report from Sentier
Research.
The report found that after adjusting for inflation,
the median household income for Americans of all ages was 4.8 percent
lower in June 2012 than it was when the recovery technically started in
June 2009, to $50,964 from $53,508.
The decline looks even worse
when comparing today’s incomes to those when the recession began in
December 2007. Then, the median household income was $54,916, meaning
that incomes have fallen 7.2 percent since the economy last peaked.
Sources:
Sentier Research estimated annual household income derived from the
monthly Current Population Survey conducted by the Census Bureau.
Income
losses vary significantly by age, though. Householders between the ages
of 55 and 64 have taken the biggest hit; their household incomes have
fallen to $55,748 from $61,716 over the last three years, a decline of
9.7 percent.
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