AUTHOR: Craig Copeland, senior research associate, Employee Benefit Research Institute (EBRI).

METHODOLOGY: EBRI examined findings from the 2007 Survey of Consumer Finances, the Federal Reserve's triennial survey of wealth, and then updated the data with its own research.

MAJOR FINDINGS: Among all American families with a defined-contribution plan in 2007, the median plan balance was $31,800, up 16% from 2004. That's low, but it gets worse: EBRI estimates that from year-end 2007 through mid-June 2009, the median balance dropped 16.4%, to $26,578. Losses were higher for families with more than $100,000 in annual income (22%), and for those who had a net worth in the top 10% (28%).

The median value of individual retirement accounts and Keogh plans, was $34,000 in 2007, up 3% from 2004. EBRI estimates that this median value dropped 15% to $28,955, from the end of 2007 to mid-June 2009.

In 2007, 40.6% of families had at least one member enrolled in an employment-based retirement plan from a current job. This was up from 38.8% in 1992, but almost unchanged from 2004, when that number was 40.3%. Of those participating in such a plan, 79.5% used a 401(k), up from 73.9% in 2004. The percentage of families owning either an IRA or a Keogh plan increased in 2007 to 30.6%, up from 29.1% in 2004.

For families that participated in a work-based defined-contribution plan, such as a 401(k), as well as a defined-benefit plan, median account balances grew from $43,932 in 2004 to $56,000 in 2007. EBRI reckons that by June 19, 2009, the median balance had retreated to $45,555, but it was still more than 2004's level.

HIGHLIGHTS: In most cases, individual retirement account plans are critically important to a family's effort to accumulate wealth, regardless of income.

THE AUTHOR SAYS: "It's clear that American families are going to need to drastically increase their savings, work longer or significantly decrease their spending in retirement if they hope to make ends meet. Americans have a great deal of work to do, after the tremendous loss of wealth in 2008, to ensure financial security in retirement. However, some optimism is warranted, as most individuals continue to contribute to their individual account plans and are in a position to accumulate added wealth as the economy recovers."