U.S. households only have a median of $2,000 saved in retirement accounts. The median net worth for those 25 to 34 is $3,700

I recently had a conversation with a retired neighbor, a former Navy vet who worked most of his life at a local grocery store. I wouldn’t call him wealthy but he has his financial house in order; he paid off his home in the early 1990s, has no other debts, and lives well below his means. His big source of income comes from Social Security. We talked about the current economy and the strain we are facing. It was a good conversation and ultimately the mathematical problems we are facing for the working and middle class become extremely obvious when confronted face to face. We both conceded that government retirement programs will have problems in one or two decades (doesn’t help many who are still working). The economic issues faced between the generations will cause many hard decisions down the road.

First, we should examine income levels in the U.S.: (more)