Many older Americans are facing severe money restrictions due to limited retirement funds, job loss and a host of other financial pressures. The current economic crisis, coupled with the increasing number of retirees (now estimated at more than 10,000 per day) who do not have adequate retirement savings, has created a serious situation in our country.
For decades we were warned that when the baby boomers retired there would be an unprecedented retirement crisis. Most baby boomers have not saved up enough money to retire, private sector pension plans are failing, many state and local government pension plans are underfunded and the Social Security system is on the road to disaster. All of this is coming at a time when there is an economic crisis in the country.
Here are 10 sobering facts about the baby boomer retirement crisis…
#1 According to the Employee Benefit Research Institute, 46 percent of all American workers have less than $10,000 saved for retirement, and 29 percent of all American workers have less than $1,000 saved for retirement.
#2 According to a recent poll conducted by Americans for Secure Retirement, 88 percent of all Americans are worried about “maintaining a comfortable standard of living in retirement”. Last year, that figure was at 73 percent.
#3 A study conducted by Boston College’s Center for Retirement Research has found that American workers are $6.6 trillion short of what they need to retire comfortably.
#4 Today, one out of every six elderly Americans lives below the federal poverty line.
#5 On January 1st, 2011 the very first Baby Boomers started to retire. For almost the next 20 years, more than 10,000 Baby Boomers will be retiring every single day.
#6 At the moment, only about 13 percent of all Americans are 65 years of age or older. By 2030, that number will soar to 18 percent.
#7 Right now, there are somewhere around 40 million senior citizens. By 2050 that number is projected to increase to 89 million.
#8 Back in 1991, half of all American workers planned to retire before they reached the age of 65. Today, that number has declined to 23 percent.
#9 According to one recent survey, 74 percent of American workers expect to continue working once they are “retired”.
#10 Between 1991 and 2007 the number of Americans between the ages of 65 and 74 that filed for bankruptcy rose by a staggering 178 percent.
Have you or someone you know faced economic hardship? How did you cope with it? What ideas do you have for resolving the baby boomer retirement crisis?