NY Times | The Income Gap Jeopardizing Retirement for Millions

Written By SCEPA

Teresa Ghilarducci, an economist at the New School for Social Research whose studies have found similar results among middle-income Americans, pointed to one reason for the growing disparity. “The house has become a reservoir of debt,” she said. “Financial institutions have figured out how to extract wealth from homes with refinancing and second mortgages, and they’ve gotten more sophisticated.”

For most middle-income people approaching retirement, she said, the primary source of wealth isn’t home equity or retirement savings. It’s Social Security benefits.

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