WASHINGTON (AP) – More than a quarter of U.S. adults age 50 and older don’t expect to retire, and 70% are concerned that prices will rise faster than their income. AARP survey find.
Roughly one in four people have no retirement savings, according to a survey released by the group on Wednesday. Even though economists and policymakers say the U.S. economy has plenty of reserves, they are increasingly worried about how America’s aging population will make ends meet. Achieved a soft landing After two years of 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 have credit card balances of $10,000 or more, and 12% have credit card balances of $20,000 or more. It turns out I have a credit card balance of more than $1,000. more. 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 intention of retiring is steadily increasing. According to the twice-yearly survey, the number 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. ”
Based on the 2022 parliamentary elections; Census data released Tuesday According to , voters 65 and older make up 30.4% of all eligible voters, while Gen Z and Millennials make up 11.7%.
Biden is trying to woo older voters by: advertise regularly be $35 price cap About insulin for people on Medicare.he plays the trumpet Medicare’s Authority to negotiate directly with pharmaceutical 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.
In a March AP-NORC poll, Most U.S. adults oppose the proposal It would cut Medicare and Social Security benefits, and most people support raising taxes on the nation’s highest earners to keep Medicare the way it is.
