Key Highlights
This report has a long list of interesting facts to share:

Consumers & their Savings Objectives
This section addresses consumers & their savings objectives:

• There are over 300 million consumers, an increase of over 5% since 1999
  
• There are over 110 million consumer households, an increase of 10% since 1997
  
• Almost half of consumers list retirement as their primary financial concern
  

Baby Boomers & the Perceived Baby Boomers Savings Crisis
This section defines baby boomers and summarizes the case for their pending saving crisis:

• Births peaked between 1950 and 1960, when 3.7 – 4.3 million people were born each year, up hugely from 1940 when only 2.6 million were born
  
• There are 74 million baby boomers
• Consumers over the age of 50 account for 38% of the population an increase of 10% since 2003
  
• The number of baby boomer households has increased almost 5% since 1999 to over 22 million
  
• The consumer population is expected to continue to age over time, with nearly half the population over the age of 45 by 2012
  
• The cumulative number of individuals age 55 and older will increase dramatically in future years
  
• Investors over the age of 55 control over three-quarters of consumer investable assets
  
• Two-thirds of baby boomers will retire between now and 2013
  
• The average expected retirement age has been getting older, now at 65, up from 62 in 1996
  
• Men and women both, on average, retire at 62 or 63 years old
  
• Almost three-quarters of workers plan to work for pay after retirement; in reality, through, less than half that many actually do
  
• The share of men working after the age 64 has decreased significantly since 1880, with less than 20% of men working in 2006
  
• Almost one-third of workers will be forced into earlier retirements due to layoffs or illness
  
• One-half of retirees under the age of 60 have retired involuntarily
  
• Of course, financial advisors are targeting rich people…about 40 million households control 90% of all investable assets
  
• Consumer households with $100,000 - $1 million investable assets have increased more than 50% since 2004
  
• There are 4.3 million consumer households with $1 - $5 million in investable assets, relatively stagnant since 1997
  
• And there are over 300,000 with $5 million+ in investable assets
  
• The risk of dying too young is increasingly being replaced by the risk of living too long, with life expectancies now averaging 77-78 years
  
• Women have a significantly higher life expectancy than men at 80.1 years versus 74.8 years
  
• Consumers that are 65 year old have over a 50% chance of living to 85 years old
  
• Women will live even longer than men in retirement, many in excess of twenty years
  
• Almost half of consumers worry that they may run out of money during retirement
  
• Retirees rely on personal savings & investments, social security, defined benefit plans, and defined contribution plans, & other sources
  
• Less than half of all workers are covered by pension plans
  
• Only a handful of 401k accounts have balances over $50,000
  
• The median annual pension payout is only $8,340
  
• The average retired worked can expect to received approximately $1,000 per month from social security, an increase of almost 15% since 2004
  
• Social security projects tax revenues will fall below program cost by 2018
  
• The vast majority of consumer households have barely any savings at all; nearly three-quarters of consumer households 33-61 years old have saved less than $10,000
  
• More than half of consumer households have less than $100,000 of investable assets
  
• Over three-quarters of baby boomers over the age of 55 have less than $100,000 in investable assets
  
• Consumer income has increased over 30% since 2001 to $12 trillion
  
• Consumer households’ net income peaks between ages 45 and 54
  
• Household consumer personal savings has decreased 140% since 2004 to negative $82 billion
  
• While the needs of the baby boomer generation expand, the personal savings rate continues to hit new all time lows
  

The Real Situation: Facts About Consumer Wealth

This section addresses the flow of funds within households and provides the real facts on the state of consumer wealth:

• Consumer households control almost three-quarters of all investable assets, more than half invested via financial advisors
  
• Consumer households have almost $23 trillion of investable assets, $70 trillion of total assets, and over $55 trillion of net worth
  
• Consumer households have almost $23 trillion in investable assets, an increase of over 40% since 2002
  
• Consumer households have two-thirds of their investable assets in brokerage accounts
  
• Consumer households assets held in brokerage accounts have increased 50% since 2002 to $16.2 trillion
  
• Individual securities account for the largest share of the investable assets of high net worth households
  
• Consumer households have over $5 trillion in equities, an increase of 20% since 2002
  
• Consumer households have over $5 trillion in mutual funds, an increase of over 100% since 2002
  
• The amount of consumer household assets in IRA accounts has grown considerably over the past decade, reaching over $4 trillion
  
• Consumer have $12.2 trillion in retirement plan assets, an increase of almost 50% since 2002
  
• Consumer households have $4.2 trillion in defined contribution plans, an increase of almost 70% since 2002
  
• Consumer households have $2.3 trillion in private defined benefit plans, an increase of 35% since 2002
  
• Consumer households have $4.2 trillion in government pension plans, an increase of 45% since 2002
  
• Consumer households have $1.6 trillion in annuities, an increase of 60% since 2001
  
• Consumer households have $27 trillion in personal assets, an increase of almost 50% since 2002
  
• Consumer households’ personal assets are dominated by residential real estate assets, accounting for over 80% of assets
  
• Consumer households have $22.9 trillion in residential real estate, an increase of over 50% since 2002
  
• Consumer households have over $4 trillion in other illiquid assets, an increase of over 50% since 2002
  
• Consumer households have over $69 trillion in household assets, an increase of 30% since 2004
  
• Consumer households have $13.4 trillion of household liabilities, an increase of over 50% since 2002
  
• Mortgages account for almost three-fourths of consumer liabilities
  
• Consumer household have over $56 trillion in net worth, an increase of almost 50% since 2002
  

The Solution: Baby Boomers’ Liquefaction

This section addresses baby boomers’ likely liquefaction:

• Despite the consistent decline in the savings rate, almost two-thirds of consumers claim to be saving more than they were a year ago
  
• Baby boomers already account for nearly half of millionaire households
  
• Boomers’ pending retirement will drive more assets into the investable assets market
  
• Consumer households investable assets will increase to over $35 trillion by 2012 as baby boomers liquefy their retirement, personal, and illiquid assets as they retire
  
• The solution to the perceived savings crisis is baby boomers liquefaction, which includes four components; retirement plan rollovers, real estate sales, small business sales, and other sources of liquefaction.
  

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Tiburon Strategic Advisors