The economy might be on the mend since the recession upended it starting in late 2007, but some are still feeling the aftereffects of the economic downturn. In a study released last week by the Federal Reserve, which examined the economic well-being of U.S. households, more than 60% of respondents said they were “doing OK” or “living comfortably,” while 34% maintained they were worse off financially compared with 2008, according to USA Today.
The report, which draws upon 2013 survey data, had other disturbing findings: Twenty-five percent revealed that financially they were just scraping by, while 13% noted they were “struggling to do so.”
Almost a quarter of those polled said that student loan debt was an issue. The survey found that the average amount of educational debt for respondents was $25,750 while the median debt for their spouse or partner was $24,593; for their children, the average outstanding education debt was $14,923. Eighteen percent said they were behind on payments on some of their education debt.
The results on retirement were epecially bleak, noted USA Today. Almost a third (31%) of those polled said they had no retirement savings or pension. And painting an even further dismal picture, 19% of respondents in that group were ages 55 to 64.
The report revealed that almost half of adults were not making retirement planning a priority, with 24% acknowledging that they had given the topic “a little thought” and 25% saying saying “they had done no planning at all.”
For 40% of respondents ages 45 and over, the recession delayed their retirement; for others, the recession had the opposite effect, with 15% of those who had retired since 2008 conceding they “retired earlier than planned due to the recession.”
Source: USA Today Fed: The long arm of the recession still felt by millions