Retirement Financial Preparedness…A Growing Concern - The Financial Brand
Calling it a “growing problem” with the potential for a “notable impact on the U.S. Economy,” The Financial Brand’s Craig Guillot analyzes a looming financial problem facing a large swath of Americans approaching the traditional retirement age of 65. Guillot’s article, posted today on thefinancialbrand.com, recaps the results of a study by the Retirement Income Institute and Alliance for Lifetime Income highlighting the precarious financial position facing many of the “(t)hirty million Americans … expected to retire between 2024 and 2030.”
Mr. Guillot’s article, which you can read in full here, provides an array of insightful statistics about the retirement financial predicament, most notably the 52.5% of survey respondents indicating that Social Security benefits will be their primary income source in retirement. The analysis provides details highlighting disparities in financial readiness among gender, ethnicity, and education cohorts.
Perhaps one of the most significant aspects of the survey is its press release summary statement: “America has never seen so many people reaching retirement age over a short period and well over half of them will find it challenging to meet their needs through their retirements, let alone maintain their current standard of living.” A serious concern, to be sure, but made even more distressing when viewed through the lens of Social Security’s steadily unraveling financial situation. Although the Guillot article only references the program’s insolvency in passing, it is clear that the potential for a major, across-the-board reduction in monthly benefits will–in well less than a decade–wreak havoc on those already destined to be struggling financially in retirement.
The result of this survey should serve as yet another warning bell for Congress that legislative action needs attention–the sooner the better.