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Despite tax benefits and a generation of strenuous marketing efforts, over half of US households do not have Individual Retirement Accounts (IRAs).

In fact, 29% of US households have neither IRAs or employer-sponsored retirement plans.

This is according to the Investment Company Institute’s “Research Fundamentals”, issued in January 2006.

This 12-page report was available in PDF format, without charge, on the Investment Company Institute website in March 2006…

IRA report

The ICI report indicates that IRAs owners are typically middle-aged, married, college educated, and employed — and with much higher incomes than people that don’t have IRA savings.

Low saving levels

The study also indicates that Americans between 50 and 64 years without formal retirement savings have median total financial assets of only $2,500.

In twenty years, the US may face a situation in which for every unionized public employee, with a generous ‘defined benefits’ retirement plan, there will be another older American, not so fortunate, living in poverty.

The inability of American political leaders to engage in constructive, honest dialogue to resolve retirement issues will have unpleasant consequences.

Until then, it is, as the Brazilians say, “Salve-se quem puder!”