One in five Americans aged 50+ have no retirement savings

Test hosted by AARP found that 20% of adults over the age of fifty have no retirement savings. Over 70% of respondents he cited the rising costs of housing that is the principal reason why they find it difficult to get monetary savings for the longer term.

Moreover, the information showed that saving for retirement doesn’t necessarily result in a way of economic security. Of participants who had savings plans, greater than a 3rd said the rising cost of living could leave them unable to support themselves through their golden years. More than 1 / 4 of Americans said they might never retire.

Nearly a 3rd of older adults said that they had a bank card balance of $10,000 or more, and 12% had a balance of $20,000 or more. This is a rise of 8% in comparison with last yr.

“America is facing a serious pension crisis. AARP has a long history of supporting legislation to increase access to retirement savings, but Congress must act faster to ensure older Americans have the financial support they need and deserve. However, approximately two-thirds of states have not yet taken action and we are waiting for the federal government to act,” he added. said Nancy LeaMond, AARP executive vice chairman and director of advocacy and engagement.

Social Security and Medicare may also impact Americans’ ability to retire; the newest annual report shows that the programs will do that there will probably be no funds to pay full advantages by 2035.

Congress is considering laws that may help increase retirement security. Bipartisan Retirement Savings Act 2023 and Automatic IRA starting in 2024, they would supply retirement savings accounts to eligible staff without employer-sponsored retirement plans.

California, Colorado, Connecticut, Illinois, Maine, Maryland, Oregon and Virginia have already implemented automatic IRA programs. Ten, including New York, Minnesota and Nevada, have passed laws but have not yet implemented their programs.