I have a friend who learned to read at 9...and was severely dyslexic....
he went on to go to harvard and stanford and is now CEO of a big company!
My own son has taken longer to learn to read and the school where he was at made him drop 2 grades. He is now in a new school that has much more of a montessori attitude and he is beginning to thrive.
Positive encouragement and self confidence are the key to happy and succesful kids.