Falling Incomes In the Midst of Economic "Recovery"

width=”300″ height=”200″ />Baby boomers just can’t get a break. Catherine Rampell of the New York Times” Economix blog reports that since mid-2009, the median household income across the working age population has fallen, with the worst decline (10 percent) seen among 55 to 64 year olds. Rampell notes that re-employment opportunities for this age group are slimmer than for other age groups, Preretirees that find work usually take a pay

cut. If economics is known as the “dismal science” then this news can’t

get much worse, particularly in light of the magical economic “recovery” that has taken place. Today’s pre-retirees clearly have daunting challenges before them and hopefully they will not have to enter retirement relying solely on Social Security.

Many recent articles have focused on the decline of the median household income over the past 10 years, and the devastating impact on those who are trying to plan for retirement. But there is much more going on here. In a soon-to-be-released NCPA study, I will discuss the other side of the coin: spending. Stay tuned for another episode of the “dismal science.”

Comments (5)

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  1. Roget says:

    Has consumption fallen as well?

  2. Kyle says:

    I found the education/race statistics the most interesting. Apparently if you have too little, or too much education, doing much better than the rest of us. The income changes for race make me wonder though..

  3. Chuck says:

    Everyday I feel like I read a new article that analyzes the plights of a certain age bracket with regards to employment. New graduates dont have enough expirience, and older people have to much (Logic: older people are usually in the last few years of career when looking to be hired, and college grads are a better “investment” due to potential for longer career at company). I think the economy is just plain bad for everyone.

  4. William says:

    The report includes an increase in median income for those 65-74 (6.9%) and 75+ (2.8%). Perhaps an increase in transfer payments?

  5. Nichole says:

    Its a hard market, for anyone looking for a job right now…

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