https://sputnikglobe.com/20240428/peak-boomer-us-faces-growing-crisis-as-older-americans-lack-savings-to-retire-1118153027.html
Peak Boomer? US Faces Growing Crisis as Older Americans Lack Savings to Retire
Peak Boomer? US Faces Growing Crisis as Older Americans Lack Savings to Retire
Sputnik International
Many older Americans fear they do not have enough money saved to comfortably retire, and millions have no savings at all. The startling finding was revealed this week in a study by the group AARP, a political interest group representing older and retired Americans.
2024-04-28T05:44+0000
2024-04-28T05:44+0000
2024-04-28T05:44+0000
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Many older Americans fear they do not have enough money saved to comfortably retire, and millions have no savings at all. The startling finding was revealed this week in a study by the group AARP, a political interest group representing older and retired Americans.The group notes that “peak boomers” are approaching retirement – the portion of the “baby boomer” generational cohort born between 1959 and 1964. These Americans are thought to represent the largest group of baby boomers to reach retirement age. But it appears they are also the poorest.The group’s survey found that 37% of Americans 50 and older fear they won’t be able to afford basic expenses like food and housing, and 70% worry about the impact of rising prices outstripping their income. Inflation has remained stubbornly high under US President Joe Biden, with recent data undermining efforts by the Federal Reserve to implement planned interest rate cuts this year.More than half of respondents surveyed do not believe they have enough money saved to get them throughout retirement.Shockingly, one-fifth of people surveyed over 50 have no retirement savings at all, raising the prospect of millions of Americans working until they drop or being forced to rely on family members to survive.The findings come as observers say the US is in the midst of a major retirement crisis. Previous generations of Americans relied on dependable workplace pensions to fund retirement, enjoying a guaranteed nest egg as a benefit of employment. But such benefits have become rare with stock market-based investment plans beginning to become more common during the 1980s.Such plans submit Americans’ savings to the whim of the market’s rise and fall, and also depend on consumers having disposable income to invest. Many of them do not as they struggle to afford basic living expenses.Additionally, Social Security, a US government-based retirement insurance program, has failed to keep up with the cost of living amid neglect from Congress, with many Americans finding it insufficient to cover the costs of retirement.Polling shows many Americans fear the program will be phased out altogether as many lawmakers have long opposed the government initiative. Presidents Ronald Reagan and George H.W. Bush appropriated funds from the Social Security program to plug holes in the federal budget after implementing tax cuts for upper income Americans. Reagan was still forced to implement steep payroll tax hikes in order to keep the program afloat as it approached insolvency.
https://sputnikglobe.com/20240409/majority-of-likely-us-voters-believe-inflation-very-serious-problem-1117819249.html
https://sputnikglobe.com/20190717/retiring-people-will-soon-face-huge-issues-due-to-housing-crisis-in-uk---charity-1076275909.html
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us retirement crisis, social security crisis, older americans can't retire, peak boomer, older americans no retirement savings, older americans retirement, inflation in us, economic downturn, americans dont have money, surging inflation
us retirement crisis, social security crisis, older americans can't retire, peak boomer, older americans no retirement savings, older americans retirement, inflation in us, economic downturn, americans dont have money, surging inflation
Peak Boomer? US Faces Growing Crisis as Older Americans Lack Savings to Retire
The United States’ transition to a market-based model of retirement insurance has resulted in millions of Americans lacking the savings to retire.
Many older Americans fear they do not have enough money saved to comfortably retire, and
millions have no savings at all. The startling finding was revealed this week in a
study by the group AARP, a political interest group representing older and retired Americans.
The group notes that “peak boomers” are approaching retirement – the portion of the “baby boomer” generational cohort born between 1959 and 1964. These Americans are thought to represent the largest group of baby boomers to reach retirement age. But it appears they are also the poorest.
The group’s survey found that 37% of Americans 50 and older fear they won’t be able to afford basic expenses like food and housing, and 70% worry about the impact of rising prices outstripping their income. Inflation has remained stubbornly high under US President Joe Biden, with recent data undermining efforts by the Federal Reserve to implement planned interest rate cuts this year.
More than half of respondents surveyed do not believe they have enough money saved to get them throughout retirement.
Shockingly, one-fifth of people surveyed over 50 have no retirement savings at all, raising the prospect of millions of Americans working until they drop or being forced to rely on family members to survive.
The findings come as observers say the US is in the midst of a major retirement crisis. Previous generations of Americans relied on dependable workplace pensions to fund retirement, enjoying a guaranteed nest egg as a benefit of employment. But such benefits have become rare with stock market-based investment plans beginning to become more common during the 1980s.
Such plans submit Americans’ savings to the whim of the market’s rise and fall, and also depend on consumers having disposable income to invest. Many of them do not as they struggle to afford basic living expenses.
Additionally, Social Security, a US government-based retirement insurance program, has failed to keep up with the cost of living amid neglect from Congress, with many Americans finding it insufficient to cover the costs of retirement.
Polling shows many Americans fear the program will be phased out altogether as many lawmakers have long opposed the government initiative. Presidents Ronald Reagan and George H.W. Bush
appropriated funds from the Social Security program to plug holes in the federal budget after implementing tax cuts for upper income Americans. Reagan was still forced to implement steep payroll tax
hikes in order to keep the program afloat as it approached insolvency.
