Lifestyle
WASHINGTON (AP) — About a quarter of U.S. adults 50 and older who have not yet retired expect to never retire, and 70% expect prices to rise faster than their incomes, according to an AARP survey. It turns out that there are concerns about this.
Roughly one in four people have no retirement savings, according to a survey released by the group on Wednesday. Two years of showings that an aging America is increasingly worried about how it will make ends meet, even as economists and policymakers say the U.S. economy has nearly reached a soft landing. After record inflation.
The biggest reason people don’t save for retirement is everyday expenses and housing costs, including rent and mortgage payments.
Data will be key this election year, as Democratic President Joe Biden and his Republican rival Donald Trump seek to win support with older Americans, who traditionally vote at higher rates, with their policy proposals. Become.
AARP’s research, based on interviews with more than 8,000 people conducted in partnership with the NORC Center for Public Affairs Research, found that one-third of seniors with credit card debt have balances of $10,000 or more, and 12 % were found to have a balance of $10,000 or more. Over $20,000.
Additionally, 37% are worried about meeting basic living expenses such as food and housing.
Indira Venkateswaran, AARP’s senior vice president of research, said, “Too many people lack access to retirement savings options, and this, combined with rising prices, is making it increasingly difficult for people to choose when to retire.” “It’s happening,” he said. She says, “Everyday expenses are the biggest barrier to increasing retirement savings, and some older Americans say they never expect to retire.”
The percentage of people over 50 who say they have no plans to retire has remained stable.According to a survey conducted twice a year, it was 23% in January 2022 and 24% in July of the same year.
“We’re seeing an expansion of older workers staying in the workplace,” said David John, senior strategic policy adviser at AARP’s Public Policy Institute. He said this is partly because older workers “don’t have enough retirement savings.” It’s a problem, and it’s likely to continue to be a problem. ”
Voters 65 and older made up 30.4% of the electorate, while Gen Z and Millennials made up 11.7%, according to census data released Tuesday based on the 2022 Congressional elections.
Mr. Biden has sought to curry favor with older voters by regularly promoting a $35 price cap on insulin for Medicare enrollees. He touts Medicare’s authority to negotiate directly with drug companies on prescription drug prices.
President Trump expressed openness to cuts to Social Security and Medicare in an interview with CNBC in March. “There’s a lot that can be done in terms of rights and reductions,” the former president said.
Trump campaign spokeswoman Caroline Levitt said in a statement to The Associated Press on Tuesday that Trump “will continue to strongly defend Social Security and Medicare in his second term.”
In an AARP survey, 33% of respondents age 50 and older believe their finances will improve within a year.
A pressing issue affecting Americans’ ability to retire is the financial health of Social Security and Medicare.
The financial safety net for millions of older Americans will run out of funds to pay their benefits in full within the next decade, according to the program’s latest annual report from its governing board. .
The report predicts that by 2031, Medicare, the government-sponsored health insurance that covers 65 million elderly and disabled people, will not be able to fully pay benefits for hospitalizations and nursing home stays. ing. And in just two years, Social Security will not have enough cash on hand to pay full benefits to 66 million retirees.
A March 2023 AP-NORC poll found that most U.S. adults oppose proposals to cut Medicare and Social Security benefits, with a majority favoring raising taxes on the nation’s highest earners to keep Medicare status quo. It was found that it supports.
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