The Federal Reserve Bank of Richmond today released its 2007 Annual Report, which features the essay "Are We Saving Enough? Households and Retirement."
Authors Senior Vice President and Director of Research John Weinberg and economics writer Doug Campbell examine the extent to which Americans are financially prepared for retirement. In their essay, they describe the results of careful studies on American saving habits. Review of the research and data shows that most families nearing retirement are saving adequately — or the best they can given their lifetime expected incomes. However, estimates about savings adequacy depend on the assumption that entitlement program benefits will be forthcoming. Population aging and the movement of baby boomers into retirement challenge that assumption and may portend a future in which some people could need to consume less than they would otherwise. The authors describe the tradeoffs involved with various approaches, and conclude that the sooner we settle on a solution to our federal retirement problems the better off all generations are likely to be.
The Richmond Fed's Annual Report also includes reports on the region's economy and the Reserve Bank’s operational and financial activity, and takes a special look at the Bank's involvement in the Fifth Federal Reserve District communities.
The Annual Report is available on the Bank's Web site, or by contacting the Public Affairs Department at 804.697.7982.
The Richmond Fed serves the Fifth Federal Reserve District, which includes the District of Columbia, Maryland, North Carolina, South Carolina, Virginia and most of West Virginia. As part of the nation's central bank, we're one of 12 regional Reserve Banks that work together with the Federal Reserve's Board of Governors to strengthen the economy and our communities. We manage the nation's money supply to keep inflation low and help the economy grow. We also supervise and regulate financial institutions to help safeguard our nation's financial system and protect the integrity and efficiency of our payments system.