The Greatest Retirement Crisis In US History Is A Looming Catastrophe For 47 Million Americans

The greatest retirement crisis in U.S. history has already begun, and official agencies are warning about the looming catastrophe that is about to hit older Americans. Without enough savings or assets, 80% of households with older adults are at risk of falling into economic insecurity as they age. But don’t be mistaken -- the impact on younger generations will be just as disastrous, they say. With seniors staying longer in the workforce to be able to make ends meet, younger workers are losing precious opportunities to advance their careers and start saving for retirement, too. A new analysis by Fidelity Investments exposes that this snowballing crisis is going to lower everyone’s standard of living over the next few years and continue to widen the inequality gap that is leaving each generation a little poorer than the one before.
According to Ronald P. O'Hanley, the firm’s president of asset management and corporate services, millions of older Americans are now headed for destitute financial futures and old ages spent in poverty. "I'm not sure what would be worse," he continued, "millions of elderly unable to house and feed themselves, or the intergenerational strife that surely would erupt if young people are forced to lower their standard of living to pay for our failure to act in a timely manner to avert this crisis."
Fidelity data shows that today, 40% of retiree households do not have sufficient income to cover their monthly expenses, O'Hanley said. "Well over half of all Americans have less than $25,000 in total savings, not counting the value of their primary residence or pension plans. And 28 percent have put aside less than $1,000."
A recent survey from the American Advisors Group detailed that 47% of seniors rated the conditions of their retirement savings as poor and 44% said they had not saved enough to retire comfortably. At the same time, 62% of adult children are worried that the cost of living crisis is impacting their parent's retirement savings, with many (35%) worried they'll have to help their senior parents financially. 
Amid this anxiety over whether their parents will have enough retirement savings, a growing number of adults are planning about using their parents' home equity as a financial solution, the survey said. However, only 18% of those 62 and older would benefit from using their home equity to pay for long-term care and other expenses, should the need arise. The remaining 82% may actually not have enough home equity to cover these costs due to the ongoing correction in housing prices and the economic recession that is upon us.
For that very reason, about a third of Americans over traditional retirement age, between 65 and 74, are expected to be still working in 2030. The increase in older workers staying on their jobs is causing concerns amongst business owners, too because employers have been expecting their expensive older workers to retire which would open senior-level jobs for younger workers looking to advance their careers.
In other words, the current retirement crisis is reaching such alarming proportions that other generations are missing key opportunities to become financially independent, debt-free, and able to build wealth to afford their own retirements when the time arrives. This is going to create major distortions in our economy and continue to impoverish younger Americans, who may never enjoy the same standard of living their parents and grandparents once had. At the end of the day, this crisis is going to impact each and every one of us as it erodes our quality of life and delays our collective growth.

[SophiaChristian-soof]

Retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My parents both spent same number of years in the civil service, but my mom was investing through a wealth manager, and my dad through the 401k.

[BrainKeener]

I've just retired recently and I must say I found this video informative and great to review. These psychological concepts are much more useful for individuals attempting to avoid mistakes than I realized when I was first introduced to them. This is probably why Warren Buffett talks so much about temperament being crucial to his investing success.

[Raymondjohn]

Am 58 retiring next year but the thought of retirement gives me weakness. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings or loved ones to fall back on.

[LiamOlivia-]

I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for...

[kaitlyncranwick]

40 now, and everything is paid for. Fortunately, I had a college economics teacher who taught me a lesson when I was 18 years old. That lesson was: you can't buy something else for every purchase you make. Having multiple sources of income is prudent, as is living within your means. I have a 13-year-old vehicle because it is all I need, I like it, and I can do whatever I want with it. My net worth is $4 million, and I can pay my bills without stress, but I don't live like I have that. I have no complaints.

[darnellcapriccioso]

I’m currently retired, and considering the current rollercoaster nature of the stock market, I decided to stay on the sideline for awhile, now I’m worried with the numerous bank failures as of late, am I better off reinvesting my savings in the stock market or do I wait?

[richardspenard]

The pandemic has shown us just how quickly decades of planning, investing and saving can be completely upended. This could mean your current financial plan might leave you without enough money to last your retirement. A recent Vanguard study found that, on average, a hypothetical $500K investment would grow to over $3.4 million under the care of an advisor over 25 years, whereas the expected value from self-management would be $1.69 million, or 50% less.

[GoCorvette]

62, divorced, raised my four kids, and now retired. My only income is my social security. I moved out of California to Oregon to cut my rent and overall expenses. You just need to be willing to live only with the basics. I let all my credit cards go and selling my truck, so I will have no monthly payments on debts. I have nothing left for anyone to take from me. I'll live happily, and I will have fun with my hobbies till I die. If I get sick and can't afford the doctors then it's over for me but that's okay. Cash, some silver, and no debts that's the way to go. Good luck, guys.

[johnwalker]

When you follow the steps below, you attain financial independence.

[therebel]

I'm 31 and I'll be working till I have 1 foot in the grave

[JGagnon]

We’re starving now! The food we eat in America is anything but real food.
Go to countries that do not allow GMO products for human consumption and taste the difference.

[micheal]

Thank you for all the warnings ahead I am a low income senior Probably end up eating canned food the rest of my life Great Babylon is falling

[almdrs]

Work until you die! That's the dream.

[elw]

Thank a politician for selling America out to foreign countries. When jobs went overseas, Americans jobs no longer provided retirement pensions or enough wage to save enough for retirement. And they want you to vote for who?

[JonBernard]

USA standard of living soon mirrors India & Indonesia.

Grotesque wealth & grotesque poverty.

[borrowedtruths]

“I have been young, and now am old; yet have I not seen the righteous forsaken, nor his seed begging bread.” (Psalms 37:25)

[shellylofgren]

I'd be retiring or working less in 5 years and I'm only curious how people split their pay, how much of it goes into savings, spendings or investments?? I earn around $165K per year but nothing to show for it yet

[abigailpena]

And people wonder why almost everyone has depression

[najahfits]

Standard of living? A decent roof over my head regardless of square footage, healthy foods to eat regardless of what I’m craving. Clothes that are clean, weather appropriate and fits regardless of the name brand and or price. Affordable health care and dental. I can keep myself clean and brush my teeth. I’m good!

[jeanah]

Retirement age is 67 or older. Not 65. First the complaint was older people were hogging the jobs. Then when it became hard finding reliable employees to hire they blamed it on seniors retiring. Seniors who are still working are not only filling needed jobs but a lot of them have depleted savings or gone into debt helping adult children for one reason or another.