No Rest for the Weary: Measuring the Changing Distribution of Retirement Wealth in the United States

Since 1992 wealth for the bottom 90 percent of households nearing retirement has fallen. The only source of wealth helping the bottom 90 percent is Social Security. Despite pro savings policies and generous tax breaks for savings, the share of the bottom 50 percent having any retirement account didn't change in 20 years - 46 percent in 1992 and 47 percent in 2016. Even the middle class suffered; the share of the next 40 percent with retirement savings fell from 85 percent in 1992 to a low of 71 percent in 2016. Housing ownership increased a bit for the bottom 50 percent but fell among the middle class and upper middle class. Home equity for the working and middle class fell. Using SCF and HRS data over 20 years, we find the bulk of working-class wealth is government social insurance. Economists should not exclude social insurance from wealth calculations. We find social insurance is the most important source of wealth for most families. Government policies and institutions have failed wealth building for most American households with workers.