Senior citizens are facing an economic crisis of epic proportions

Photo by Vlad Chețan from Pexels

Since so many reporters in the leftist media are relatively young, most of the stories about people facing economic hardship are young. 

The truth is though younger people still have time to plan and prepare for the future and the opportunities that may await them.

But retired senior citizens are caught in a serious economic crisis with no way out.

The bulk of retirees are living off of paltry incomes

A new report from the Census Bureau’s Current Population Survey uncovered that over half of all Americans over the age of 65 are currently living on an income of $30,000 or less per year. 

Even worse, the bulk of people in this age bracket, just under 23 percent, are living off incomes between $10,000 and $19,999.

The data means that there are potentially millions of elderly and retired Americans who are barely making ends meet.

The report on retirees cited the National Retirement Risk Index, which found that approximately half of households “will not be able to maintain their pre-retirement living standard.”

It also found that 56 percent of low-income households and 45 percent of middle-income households are “at risk” of being unable to maintain pre-retirement standards by the time they reach age 65.

Approximately 73 percent of people in the bottom group of wealth holders are at risk compared to 28 percent in the highest wealth group.

A 2023 Pew Charitable Trust study stated that as more households with older Americans are financially at risk from 2021 to 2040, state governments could take a massive hit of $1.3 trillion.

It also means that more retirees are finding themselves in financial trouble, unable to afford basic necessities like healthcare and housing. 

A large portion of Americans who hope to work until retirement likely won’t have any money to fall back on.

According to the Federal Reserve’s Survey of Consumer Finance, just 42 percent of Americans who are 75 and older had retirement accounts in 2022, and 51 percent of Americans between the ages of 65 and 74 had retirement accounts.

Older Americans are living in poverty

Analysis from the Center on Budget and Policy Priorities also found that approximately 10 percent of older Americans are living in poverty.

Around 38 percent of Americans ages 65 and older would also be living below the poverty line without Social Security as a safety net.

The Social Security benefits in America are far behind some other wealthy countries, where benefits account for 51.8 percent of workers’ earnings compared to America, which is under 40 percent.

This crisis is coming at a time when many older Americans are also seeing their adult children move back in or having to depend on them financially as younger generations also contend with financial issues.

One baby boomer who returned to work to support her Gen Z kids said, “I’m really expecting the landscape of the economy for this generation that my children are in to be dismal.”

Informed American will keep you up-to-date on any developments to this ongoing story.