Over one-quarter of U.S. adults over the age of 50 anticipate never retiring, according to an AARP survey. The survey, conducted in collaboration with the NORC Center for Public Affairs Research, also revealed that 70% of older adults are concerned about prices rising faster than their income. Furthermore, approximately 1 in 4 older adults have no retirement savings, highlighting the financial challenges faced by an aging population.
Everyday expenses, including rent or mortgage payments, are identified as the primary barriers preventing individuals from saving for retirement. Additionally, the survey found that one-third of older adults carry a credit card balance exceeding $10,000, while 12% have a balance of $20,000 or more. This financial burden exacerbates concerns about meeting basic living expenses such as food and housing.
“Numerous individuals lack access to retirement savings options, and coupled with higher prices, this makes it increasingly difficult for people to determine when they can retire,” said Indira Venkateswaran, Senior Vice President of Research at AARP. “Everyday expenses continue to be the biggest obstacle to saving more for retirement, and several older Americans indicate that they do not anticipate ever retiring.”
The share of individuals over 50 who do not expect to retire has progressively increased in recent times. According to the semi-annually conducted survey, this figure stood at 23% in January 2022 and 24% in July 2022.
“We are observing an increase in the number of older workers remaining in the workforce,” said David John, Senior Strategic Policy Advisor at the AARP Public Policy Institute. “This is partly attributable to the fact that older workers do not have sufficient retirement savings. It is a prevailing issue that is likely to persist in the future.”
The financial health of Social Security and Medicare is another looming concern that could impact Americans’ ability to retire. The latest annual report from the program’s trustees warns that these financial safety nets for millions of older Americans are projected to deplete their funds within the next decade.
Medicare, the government-sponsored health insurance program for seniors and disabled individuals, is expected to face challenges in covering full benefits for inpatient hospital stays and nursing home care by 2031. Similarly, Social Security is anticipated to encounter difficulties in disbursing full benefits to its retirees by 2033.
An AP-NORC poll conducted in March revealed that most U.S. adults oppose proposals to cut Medicare or Social Security benefits. The majority of respondents also support raising taxes on the nation’s highest earners to maintain Medicare’s current operations.
These findings highlight the urgent need to address the financial concerns and retirement challenges faced by older Americans. As the U.S. population continues to age, these issues are expected to become increasingly prominent and require thoughtful and effective policy solutions.
