The U.S. Federal Reserve is out with their annual update on the financial well-being of U.S. Households.  There is a ton of very useful information in the more than 50-page report, but one particular item jumped out at me, which we’ve reported on before.

Despite the claims of full employment and stronger economic growth, 40% of American households could not meet a $400 emergency expenditure without having to use either a credit card that spreads payments out over months or through borrowing from family and friends. Now, this is better news than the last survey in which 47% of households reported that they weren’t prepared to meet an unexpected emergency of this magnitude.

What is the likelihood that these households are able to put aside money for retirement now that most employees are being asked to fund their own retirement through a defined contribution type program?