Though even that might not seem that respectable when you understand that these folks are nearing retirement and $130,000 is probably not going to cut it.
You’re soft-soaping it here. If a household goes into retirement with 130K, they’re basically going to live on Social Security. Which is not pretty.
But if the dream of getting old and retiring is that you stay in your home and live off your pension and savings, then it is useful to take the homes out to see what is actually left over. And it’s really not a whole lot, for most Boomers.
I’d add here that in many states, the idea of “staying in your home” is often a nonstarter due to property taxes. Property taxes vary widely across the nation, but they tend to be extremely high in (a) the urban/developed states, and (b) the states that have no income tax.
We’re in Texas and nearing retirement. Texas is a crappy retirement state; there’s no income tax, but retired people don’t have income; they get hit with sales and property taxes. A good metric in Texas is that you will pay about 2% of your home’s value PER YEAR in property taxes; and that’s several states are worse.
Despite popular misconceptions to the contrary, it seems to me that the Boomers are not the problem. The rich are.
Uh…..what? How did you connect the dots to “the rich?” That seems bereft of logic.