"The most noticeable drops in ownership were among families in the middle-income, middle-wealth, and middle-age groups," the economists said. "Retirement accounts had been growing in importance as a supplement to Social Security and other types of retirement income, and the decrease in ownership in the past three years may represent a setback."
Fed economists conduct the surveys every three years to produce a snapshot of household balance sheets, pensions, income, and demographics that's more detailed than broader reports about the economy. The surveys allow comparisons over time, with a consistent methodology since 1989.
The U.S. added 69,000 jobs last month even as the Fed maintained record stimulus. The economy grew more slowly in the first quarter than previously estimated, expanding at a 1.9 percent annual rate, down from a 2.2 percent prior estimate.
Minutes of the last FOMC meeting April 24-25 showed policy makers said a loss of momentum in growth or increased risks to their economic outlook could warrant additional action to preserve the recovery. Fed policy makers are scheduled to meet June 19-20 in Washington.
Wealthiest Families
Declines in average income were greatest in the wealthiest 10 percent families and for higher education or wealth groups, the survey showed. The housing slump and financial crisis also boosted the dependence on wages as a percentile of net worth for the wealthiest 10 percent.
The top 10 percent by wealth got 55.8 percent of their pre- tax family income from wages in 2010, up from 46.2 percent in 2007, the survey found. The portion earned from capital gains plunged to 2.3 percent from 14.4 percent.
Debt as a share of family assets rose to 16.4 percent from 14.8 percent as asset values declined, the Fed said. For those households with debt in 2010, the median value of debt was unchanged from 2007, while the share of families having debt fell to about 75 percent from 77 percent. Debt payments more than 60 days overdue were reported by 10.8 percent of families in 2010, up from 7.1 percent in the prior survey.
Debt Burdens
"Measures of debt payments relative to income might have been expected to increase," Fed economists wrote. "In fact, total payments relative to total income increased only slightly, and the median of payments relative to income among families with debt fell after having risen between 2004 and 2007. The share of families with high payments relative to their incomes also fell after rising substantially between 2001 and 2007."
The survey was compiled by Fed economists Jesse Bricker, Arthur Kennickell, Kevin Moore and John Sabelhaus in Washington. All dollar figures are expressed in 2010 dollars.