Many older Americans may never retire due to finances – AARP survey
WASHINGTON, UNITED STATES — About one in four U.S. adults aged 50 and older who haven’t yet retired expect they will never be able to, according to a new AARP study.
The findings highlight growing financial strains and retirement insecurity for many aging Americans.
“Far too many people lack access to retirement savings options and this, coupled with higher prices, is making it increasingly hard for people to choose when to retire,” said Indira Venkateswaran, AARP’s senior vice president of research.
“Everyday expenses continue to be the top barrier to saving more for retirement, and some older Americans say that they never expect to retire.”
U.S. economic conditions and retirement
The survey of over 8,000 people found that the share of older adults not expecting to retire has held steady at around 24% since early 2022, with 70% concerned that prices are rising faster than their income.
One-third have over $10,000 in credit card debt, and 37% worry about affording basic living costs like food and housing.
David John, an AARP policy advisor, noted: “We are seeing an expansion of older workers staying in the workforce, in part because they don’t have sufficient retirement savings. It’s a problem likely to continue.”
In fact, one in eight (12%) American retirees are likely to rejoin the workforce in 2024, a recent survey by ResumeBuilder.com reveals.
According to Pew Research Center, 19% of Americans aged 65 and above were employed in 2023, marking a significant shift in the American workforce in 35 years.
Political impact and policy proposals
The data assumes greater significance in an election year. President Joe Biden and his Republican counterpart, Donald Trump, are vying for the support of older Americans, a group known for their high voter turnout.
Biden has emphasized policies like a $35 price cap on insulin for Medicare recipients and the power of Medicare to negotiate drug prices directly.
Conversely, Trump has hinted at potential cuts to Social Security and Medicare, though his campaign later stated that he “will continue to strongly protect Social Security and Medicare in his second term.”
