Over the past few years, a lot of concerns have been raised with regards to the retirement plans and provisions of Americans. Many have expressed concerns over the lack of retirement savings that many Americans have, which could lead to major financial problems for them when the time comes to retire.
One recent report has highlighted the retirement crisis in America, stating that if things continue the way they are then the number of retirees that are classed as poor or near-poor will come close to tripling by 2050. Officials state that if this happens it could result in the highest rate of poverty amongst seniors since the Great Depression.
A profound effect on budgets
According to experts, this retirement crisis will not only affect people on a personal level as they move into their golden years with nowhere near enough money to live comfortably on. It will also affect the country’s budgets including federal budgets, state budgets and local budgets. These are likely to be very long term effects that could have an impact for many years to come.
A number of financial surveys and polls have been carried out over recent years, and one of the top financial worries that people have expressed is in relationship to saving for retirement. Americans aged between forty and fifty-five years of age have average retirement savings of around $14,500 according to figures but experts claim that in order to enjoy the same standard of living they have become used to while working they will need around twenty times that amount.
Officials have said that there are many different factors that have affected the ability of Americans to save towards retirement. Some of the key ones that were highlighted in the recent report included the rising cost of healthcare, lack of wage increases, higher childcare costs, and rising student loan debts. These are just some of the main reasons that have been cited as contributing towards the retirement crisis in America.
With retirement years meant to be the time of life where people actually get to relax and enjoy some quality time without the worry of work, the figures do not make for good reading. In fact, more worrying is the fact that not only will many Americans be left without the chance to enjoy their golden years but that many will not even be able to afford to live comfortably as a result of their financial situations.
Posted in: Economy