[A-List] Plummeting house prices will leave millions of homeowners dependent on Social Security

[Leighm <the.buffalo.in.the.midst@xxxxxxxxx>]

Yeah, I know, the Social Security/Baby Boomer solvency 'crisis' IS a red 
herring, but were those optimistic calculations done taking into account 
worst case, 'full payout to all' scenarios?


Baby Boomers Face Massive Loss of Retirement Wealth Due to Housing 
Market Meltdown

Plummeting house prices will leave millions of homeowners dependent on 
Social Security in their retirement

For Immediate Release: June 24, 2008
Contact: Alan Barber, (202) 293-5380 x 115

WASHINGTON, DC - Former GAO Comptroller General David Walker testified 
today before the House Budget Committee about a proposed commission to 
cut Social Security and Medicare for future retirees. However, as 
Congress debates this issue, they must take into account the financial 
situation of near retirees. A new report from the Center for Economic 
and Policy Research (CEPR) shows that, due to the collapse of the 
housing bubble, the vast majority of near retirees have accumulated 
little or no wealth. This means that they will be almost completely 
reliant on Social Security and Medicare to support them in their 
retirement years.

The study, "The Housing Crash and the Retirement Prospects of Late Baby 
Boomers," analyzed the wealth holdings of families headed by people 
between the ages of 45 and 54 in 2004 and projected the wealth of these 
families in 2009. The findings are presented by income quintile under 
three scenarios- real house prices remain at current levels, real house 
prices fall by 10 percent, or real house prices fall by 20 percent. In 
all three scenarios, the vast majority of these families will have 
little or no housing wealth in 2009.

In Full with linkage: 
http://www.cepr.net/index.php/publications/reports/the-housing-crash-and-the-retirement-prospects-of-late-baby-boomers/