June 24, 2024

South of the border, one in four Americans don’t plan to ever retire

Lacking any retirement savings, a new poll finds that one in four Americans say they “expect to never retire,” reports the Associated Press via MSN.

The survey was carried out by the AARP, and also concluded that 70 per cent of those surveyed – U.S. adults aged 50 and older – “are concerned about prices rising faster than their income,” the AP reports.

“About one in four have no retirement savings, “ the article continues, adding that the AARP research “shows how a graying America is worrying more and more about how to make ends meet even as economists and policymakers say the U.S. economy has all but achieved a soft landing after two years of record inflation.”

Those responding to the survey cited “everyday expenses and housing costs, including rent and mortgage payments,” as the biggest reasons why “people are unable to save for retirement,” the story notes.

Credit card debt was also cited as a barrier to saving, the report adds.

“The AARP’s study, based on interviews completed with more than 8,000 people in coordination with the NORC Center for Public Affairs Research, finds that one-third of older adults with credit card debt carry a balance of more than $10,000 and 12 per cent have a balance of $20,000 or more. Additionally, 37 per cent are worried about meeting basic living costs such as food and housing,” notes the AP story.

“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,” states Indira Venkateswaran, AARP’s senior vice president of research, in the AP article. “Everyday expenses continue to be the top barrier to saving more for retirement, and some older Americans say that they never expect to retire,” she tells the AP.

The article notes that the number of folks choosing to “never retire” has risen over the past three years of surveys, from 23 per cent in January of 2022 and from 24 per cent in July of that same year.

“We are seeing an expansion of older workers staying in the workforce,” states David John, senior strategic policy advisor at the AARP Public Policy Institute, in the AP article. He tells the AP that older workers “don’t have sufficient retirement savings. It’s a problem and is likely to continue as we go forward.”

The article says there are other factors at play for older Americans, such as concerns about the long-term financial health of the U.S. Social Security system and rising costs of Medicare.

It’s definitely an eye-opener to see how many folks plan to keep working indefinitely. We know of a few fellow seniors who are taking this approach as well, and plan to work beyond age 65 and into their 70s.

The article talks about a lack of access to workplace savings programs. This is one of the reasons why the Saskatchewan Pension Plan was founded in the 1980s – to provide people who don’t have a retirement program through work to be able to set up their own, through SPP. SPP does all the hard work for you – your contributions are invested in a pooled, professionally managed and low-cost fund. At retirement, you can choose such options as income for life via an SPP annuity, or the more flexible Variable Benefit. If you don’t have a savings program through work, SPP may be the answer for you!

Check out SPP today!

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Written by Martin Biefer

Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. A veteran reporter, editor and pension communicator, he’s now a freelancer. Interests include golf, line dancing and classic rock, and playing guitar. Got a story idea? Let Martin know via LinkedIn.


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