WASHINGTON — More than a quarter of American adults over 50 say they expect to never retire and 70% worry about prices rising faster than their incomes, an AARP survey shows.
About 1 in 4 have no retirement savings, according to research released Wednesday by the organization, showing how an aging America is increasingly concerned about how to make ends meet, even as economists and policymakers say the U.S. economy is nearing achieved a soft landing. after two years of record inflation.
Daily expenses and housing costs, including rent and mortgage payments, are the biggest reasons people can’t save for retirement.
The data will be important this election year as Democratic President Joe Biden and Republican rival Donald Trump try to win support with their policy proposals from older Americans, who traditionally turn out in large numbers.
The AARP survey, based on interviews with more than 8,000 people in collaboration with the NORC Center for Public Affairs Research, found that one-third of older adults have a credit card balance of more than $10,000 and 12% have a balance of $20,000 or has more. more. Additionally, 37% are concerned about meeting basic living costs such as food and housing.
“Far too many people don’t have access to retirement savings options and this, combined with higher prices, is making it increasingly difficult for people to choose when to retire,” said Indira Venkateswaran, AARP’s Senior Vice President of Research. “Daily expenses remain the top barrier to saving more for retirement, and some older Americans say they never expect to retire.”
The share of people over 50 who say they do not expect to retire has steadily increased. According to the survey, which is conducted twice a year, this was 23% in January 2022 and 24% in July.
“We are seeing an increase in the number of older workers remaining in the workforce,” said David John, senior strategic policy advisor at the AARP Public Policy Institute. He said this is partly because older workers “do not have sufficient retirement savings. It is a problem and it will likely persist as we move forward.”
Based on the 2022 congressional elections, census data released Tuesday shows voters 65 and older made up 30.4% of all voters, while Gen Z and millennials accounted for 11.7%.
Biden has tried to woo older voters by regularly promoting a $35 price cap on insulin for people on Medicare. He extols Medicare’s powers to negotiate directly with drug manufacturers over the cost of prescription drugs.
Trump indicated in an interview with CNBC in March that he would be open to cuts to Social Security and Medicare. The former president said: “You can do a lot in terms of rights, in terms of cuts.”
Karoline Leavitt, press secretary for Trump’s campaign, said in a statement to The Associated Press on Tuesday that Trump “will continue to vigorously protect Social Security and Medicare in his second term.”
The AARP survey shows that 33% of respondents over the age of 50 think their finances will be better in a year.
One looming issue that will impact Americans’ ability to retire is the financial health of Social Security and Medicare.
The latest annual report from the program’s administrators says the financial safety nets for millions of older Americans will not have enough money to pay full benefits over the next decade.
Medicare, the government-sponsored health insurance that covers 65 million elderly and disabled people, will not be able to pay full benefits for hospital visits and nursing home stays in 2031, the report said. And just two years later, Social Security won’t have enough cash on hand to pay full benefits to its 66 million retirees.
An AP-NORC poll from March found that most American adults oppose proposals that would cut Medicare or Social Security benefits, and a majority favor raising taxes on the nation’s highest earners to keep Medicare going. keep it as it is.