Millions of Americans Will Face Poverty in Retirement, Study Finds

Workers and their spouses are expected to sink into poverty in their old age.

Two out of five older middle-class citizens working in the United States are expected to slide into poverty in retirement, a recent study has found.

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“Public policy that relies on the hope that people can work longer to make up for eroding pensions is not realistic,” labor economist and co-author of the study, Teresa Ghilarducci said in a series of Twitter post. “Hope is not a plan.”

Roughly 8.5 million Americans are at risk of living in poverty in their old age, according to the Schwartz Center for Economic Policy Analysis at The New School (SCEPA).

The study states that “if workers ages 50 to 60 retire at age 62,” which is the average age of retirement, “8.5 million people are projected to fall below twice the Federal Poverty Level.”

@tghilarducci "Most people do not have (retirement) money because they don’t have any opportunities to save...And we want to tell people there is no shame when the system lets them down." -@SCEPA_economics RA @sia_rdp at @IPT_info forum on investor education and protection.

Around 2.6 million are expected to be hit the worst with retirement incomes well below the poverty line at $11,700.

While the cost of living depends greatly on the town (or city), state, and region, the national average is about $53,000 US dollars.

Poor health and lack of employment options are two areas of concerns laid out by SCEPA.

Older populations receive the most medical care out of any other demographic in the U.S.

In 2010, healthcare costs for a person aged 65 and older added up to about $18,500 US dollars. It’s anticipated that by 2050, 83.7 million people will be 65 and older according to the U.S. Census Bureau.

@SCEPA_economics Economic shocks, like health problems or job losses, have decimated the retirement savings of many Americans in the wake of the financial crisis. More: https://reut.rs/2xKDv9Z @tghilarducci

Around 2.6 million are expected to be hit the worst with retirement incomes well below the poverty line at $11,700.

While the cost of living depends greatly on the town (or city), state, and region, the national average is about $53,000 US dollars.

Poor health and lack of employment options are two areas of concerns laid out by SCEPA.

Older populations receive the most medical care out of any other demographic in the U.S.

In 2010, healthcare costs for a person aged 65 and older added up to about $18,500 US dollars. It’s anticipated that by 2050, 83.7 million people will be 65 and older according to the U.S. Census Bureau.