(WASHINGTON, DC) — About a quarter of U.S. adults over age 50 say they hope to never retire and 70% are worried about prices rising faster than their income, a AARP Survey finds.
About 1 in 4 have no retirement savings, according to a survey released Wednesday by the organization that shows how an aging America is increasingly worried about how to make ends meet, even as economists and policymakers say the US economy has practically managed a soft landing after two years of record inflation.
Daily expenses and housing costs, including rent and mortgage payments, are the main reasons people fail to save for retirement.
The data will be important this election year as Democratic President Joe Biden and Republican rival Donald Trump try to win the support of older Americans, who traditionally turn out in large numbers, with their policy proposals.
The AARP study, based on interviews conducted 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 have a balance greater than $10,000 and 12% have a balance of $20,000 or more. Additionally, 37% are concerned about covering basic living costs, such as food and housing.
“Many people don’t have access to retirement savings options and this, along with higher prices, is making it increasingly difficult for people to choose when they retire,” said Indira Venkateswaran, senior vice president of research at AARP. “Everyday expenses remain the top barrier to saving more for retirement, and some older Americans say they never expect to retire.”
The percentage of people over 50 who say they do not expect to retire has been steadily increasing. It was 23% in January 2022 and 24% in that month of July, according to the study, which is carried out twice a year.
“We are seeing an expansion 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 enough savings for retirement. It’s a problem and it’s likely to continue as we move forward.”
Based on the 2022 congressional elections, census data released Tuesday shows that voters aged 65 and over made up 30.4% of all voters, while Gen Z and millennials made up 11.7%.
Biden tried to court older voters promoting regularly The $35 Price Limit about insulin for people on Medicare. He trumpets Medicare powers to negotiate directly with drug manufacturers over the cost of prescription drugs.
Trump, in an interview with CNBC in March, indicated he would be open to cuts to Social Security and Medicare. The former president said that “there is a lot you can do in terms of rights, in terms of cuts”.
Karoline Leavitt, Trump campaign press secretary, said in a statement to The Associated Press on Tuesday that Trump “will continue to strongly protect Social Security and Medicare in his second term.”
In the AARP survey, 33% of respondents over the age of 50 believe their finances will improve within a year.
One looming issue that will affect Americans’ ability to retire is the financial health of Social Security and Medicare.
The latest annual report from program administrators says the financial safety nets for millions of older Americans will run out of money to pay for full benefits within 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 until 2031, the report predicts. And just two years later, Social Security won’t have enough money on hand to pay all benefits to its 66 million retirees.
A March 2023 AP-NORC poll found that most U.S. adults oppose the proposals This would reduce Medicare or Social Security benefits, and most support increasing taxes on the nation’s highest earners to keep Medicare operating as it is.
This story originally appeared on Time.com read the full story
