While most people dream of the day they can call it a career and live off their retirement savings, studies are showing that’s just that for millions of Americans: a dream.
According to 2022 data from the Federal Reserve, 43% of 55-to-64-year-olds had no retirement savings to speak of, and millions won’t be able to cover the eventual cost of long-term care.
With 44% of boomers at retirement age, and millions more about to kick their feet up by 2023, according to Census Bureau data cited by Business Insider, the wealth inequality in this country while people are working age also relates to their retirement.
That is to say while 56 million Americans over 65 hold more than half of America’s wealth, according to the Federal Reserve — some $96.4 trillion, in fact — that figure is misleading because it factors in the very wealthy in this country and not your average person.
The same 2022 data showed 30% of people over 65 were labeled “economically insecure”: They made less than $27,180 for a single person, Insider points out. The National Council on Aging puts that number at 17 million people, and as more people retire, that number will grow.
Business Insider reports the median retirement account for the 65-to-74-year-old age group has only $200,000 — which means half of that age group has “even less saved up.”
And as more and more people age out of the workforce with little to no savings, they’ll be stressing the healthcare system — and more younger people will have to find a way to provide for their parents.
In fact, the publication labels it a ticking “boomer retirement bomb.”