A large portion of the boomer generation could reach retirement age in poverty or near poverty according a new study.
How badly is COVID-19 hurting Americans on the cusp of retirement? Maybe worse than we thought.
In an interview, economist Teresa Ghilarducci, a professor at The New School in New York City and one of the nation’s leading experts on retirement, told me that half—that’s right, half—of Americans aged 55 and up will retire in poverty or near poverty.
“Our data is showing that, because of the COVID recession, about 50% of workers over the age of 55 will be poor or near-poor adults when they reach 65,” she said.
How poor is that? “A person who’s 65 will be near-poor or poor if they’re living on less than $20,000 a year,” she told me. “I think we could all agree that means chronic deprivation for the rest of your life.”
This is shocking and although I’ve viewed the retirement situation in the United States as more of a chronic illness than a crisis, this would make it a crisis for millions of Americans. It also would reverse decades of progress toward eliminating poverty among the elderly, from the Social Security Act of 1935 through Medicare in 1965 and beyond. As more people turn 65 and face poverty-stricken retirements, the fiscal and political implications could be enormous.
Quite honestly, I think the numbers will be far worse. Many in the boomer generation did not plan their finances properly. They lived beyond their means through credit cards and high interest loans.
Now that the coronavirus hoax and subsequent government lockdowns has destroyed the economy, it is only going to exacerbate the problem. Further aggravating the situation is the Federal Reserve creating gazillions of dollars out of nothing to prop up the fraudulent market system. This is only going to erode the purchasing power of the little money these people have saved.
I wish these people lots of luck. It is unfortunate for sure, but they really only have themselves to blame for this situation.
