One-quarter of Americans over the age of 50 anticipate never retiring, according to a study published by , indicating growing concerns among older adults about their financial futures. Inflation has outpaced income growth for 70% of individuals in this age group, while nearly one-fourth have no retirement savings. These findings highlight the challenges faced by an aging population in the United States, with economists and policymakers acknowledging that the economy has yet to fully recover from the impact of inflation.
Everyday expenses, including housing costs, are the primary obstacles to retirement savings. This data holds significant relevance in the upcoming election year, as both Democratic President Joe Biden and Republican rival Donald Trump seek to gain the support of older voters.
AARP’s study, conducted in collaboration with the NORC Center for Public Affairs Research, surveyed over 8,000 individuals and revealed that one-third of older adults with credit card debt carry a balance exceeding $10,000, while 12% have a balance of $20,000 or more. Additionally, 37% express concerns about meeting essential living expenses, such as food and housing.
Indira Venkateswaran, AARP’s senior vice president of research, emphasized the lack of access to retirement savings options and the impact of rising prices on individuals’ retirement decisions. Everyday expenses continue to hinder efforts to save for retirement, leading some older Americans to believe they may never retire.
The proportion of individuals over 50 who do not anticipate retiring has been steadily increasing, reaching 24% in July 2022, compared to 23% in January of the same year. This study is conducted biannually.
David John, senior strategic policy advisor at the AARP Public Policy Institute, attributes this trend to insufficient retirement savings, a problem that is expected to persist in the future.
Based on the 2022 congressional elections, voters aged 65 and older comprised 30.4% of the total electorate, while Gen Z and millennials accounted for 11.7%.
President Biden has endeavored to appeal to older voters by proposing a cap on insulin costs for Medicare beneficiaries and advocating for the government’s negotiation of prescription drug prices. In contrast, Trump has indicated a willingness to consider cuts to Social Security and Medicare, stating in an interview with CNBC that there is room for reductions in entitlements.
Karoline Leavitt, press secretary for Trump’s campaign, affirmed in a statement to The Associated Press that Trump would continue to safeguard Social Security and Medicare in a second term.
Despite economic recovery, financial concerns among older Americans persist, with one-quarter expecting to never retire. Inflation and insufficient retirement savings are major contributing factors to this trend, highlighting the challenges faced by an aging population in the United States.
