How 2024’s Record Retirement Numbers Could Spark a Recession | WSJ

Over four million Americans will reach traditional retirement age this year, more than any other time in history. By 2030, baby boomers will all be 65 or older, shrinking the workforce share of the population. What does this mean for Social Security, which is funded by taxing current workers?

WSJ breaks down how this demographic shift threatens the future of Social Security if nothing is done before 2034.

Chapters:
0:00 Baby boomers retiring
0:27 How the workforce is changing
1:10 How this impacts Social Security
2:26 How this affects the people
4:30 What reform would look like

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#Retirement #Economy #WSJ

[Patriciabanks]

More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.

[lightschunk]

I was told in two economics classes that I shouldn't expect social security so I had to save up for retirement. I still have to pay into it though...

[sommersalt]

Baby boomers are retiring or on the verge to, so how do we deal with such recession-influenced market conditions? Typically my $250k worth of holdings go up 8% then lose 20% right after and the cycle continues, I’m confused and truly sick of the system

[cezar]

Nobody is prepared to do anything about it because at the eleventh hour it becomes leverage for political expediency.

[autobotdiva]

people are focused on paying the now $1674 rent for a 1 bedroom when 3 years ago it was $720 a month

[Riggsnic_co]

I think the retirement crisis will get even worse. A lot of people can’t save because of low paying jobs, inflation, and insane rental rates. And now that home ownership is out of reach for middle class Americans, they won’t have a house to retire with either.

[Rochelletrem]

This is my fifth year after retirement. I’e been following the 4% rule thing I saw on a youTube channel, but this isn’t really how hard I expected things to be. After I cashed out a lump sum, I still have about $760k left, but at this rate, and with how the market is (we were putting money away in an index fund), I’m starting to get really worried.

[Itsmarkyoung]

“How covid could spark a recession” oh never mind “how inflation could spark a recession” oh never mind “how record retirements could cause a recession” the media will keep us “on the brink of a recession” no matter the economic climate it seems

[williesullivan]

I love how cutting military spending is seen as a worst case scenario lol

[SteveDutton-v]

Recession! Crash! Inflation! It’s getting depressing. I have about $100k in emergency fund and I have been seeing good news about the stock market and would like to gain from that since I can’t let my savings be corroded by inflation. What stocks should I into as a newbie to safely grow my money.

[NicholasBall]

I’ve been diligently working, saving and contributing towards financial freedom and early retirement, but the economy so far since the pandemic has eaten away most of my portfolio, what I want to know is this: Do I keep contributing to my portfolio in these unstable markets or do I look into alternative sectors.

[csm]

I remember sitting in a high school class, around 1978, and the teacher laid out the same scenario.

[Peterl]

I would say TAKE ADVANTAGE OF THE RECISSION! Recessions are an unavoidable part of the economic cycle; all you can do is prepare for them and plan accordingly. I graduated into a slump (2009). My first job after graduating from college was as an aerial acrobat on cruise ships. Today, I work as a VP for a global corporation, own three rental properties, invest in stocks and businesses, run my own company, and have increased my net worth by $500k in the last four years.

[theroadstopshere]

Bold of you to assume any of us younger generations expected to get Social Security payouts in the first place, WSJ. Hearing that it'd still be there to a large degree and things would just generally be shittier is already better news than most of us were expecting. We already knew that we were gonna be facing a tougher financial future than our parents and grandparents because we're living it now, knowing that even when the trust runs dry we'll still be able to get back a portion of what we paid in is a helluva lot better than the 3 slugs retirement plan most of us were expecting. (2 slugs of liquor, 1 of buckshot)

[RossiPopa]

There is potential for considerable wealth increase with the correct strategy. I want to know; How can one take advantage of compound interest and potentially grow your retirement savings/net-worth to about $3M over time?

[benitabussell]

The current economy is unnecessarily tougher for boomers/senior citizens, I’m used to just buying and holding assets which doesn’t seem applicable to the current rollercoaster market plus inflation is catching up with my $2M portfolio. I’m really worried about survival after retirement.

[masterchinese]

Gen Xer here. Can't help but notice that in 2034, the year SS is supposed to run out of IOUs, is the year that I become eligible for SS. Thanks, Boomers.

[michaelschiemer]

Most Americans find it hard to retire comfortably amid economy downtrend. Some have close to nothing going into retirement, my question is, will you pay off mortgage as a near-retiree, or spread money for cashflow, to afford lifestyle after retirement?

[christophergreen]

Unbelievable. This problem was perfectly clear when we were arguing about retirement security during the 1988-1989 high school policy debate season, and got even clearer after GWB spent so much of 2005 talking about it.

[lorenabueno]

My high school teacher in 2013 told me to forget about my social security benefit even if I am a young student in the workforce I will probably not see the benefits. And here we are 10years later. And I’m starting to feel like legislative body is not going to do any of this