More Americans are reaching retirement age than ever — and they’re not ready
A recent study by the Retirement Income Institute and Alliance for Lifetime Income shows that nearly two-thirds of the incoming wave of Americans approaching 65 is not prepared for retirement. This, and other factors — including workforce departure and spending decline — is expected to have a notable impact on the U.S. economy at large.
In the next few years, more Americans than ever will reach the traditional retirement age of 65. A study commissioned by the Retirement Income Institute and the Alliance for Lifetime Income found nearly two-thirds of those approaching retirement age are unprepared and will struggle to meet their financial needs. It noted wide disparities in retirement security based on gender, ethnicity and education. Meanwhile, the decline of defined benefit programs will lead more than half of respondents to rely on Social Security as their primary source of income.
The large number of experienced boomers leaving the workforce — combined with reduced spending — is also expected to have a notable impact on the U.S. economy. A decline in GDP and a surge in entitlement spending will also create additional economic ripple effects. The report’s authors note that limited retirement assets and increasing lifespans will make annuities a more attractive option in the coming years.
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