Many of the baby boomers born in the early years after World War II and who will retire in the coming years do not have sufficient savings for a secure retirement, placing an additional burden on the U.S. economy and young Americans. The publication reports that Business Content.
According to U.S. Census data, 44% of baby boomers have already reached retirement age, and millions more will join them in the coming years, making them the largest retiring generation in history. The general idea is that this generation will live in abundance thanks to decades of accumulated wealth. But the publication writes that this is not entirely true.
Overall, Americans over 65 control more than half of the nation’s wealth, but there is significant inequality. Insider notes that this group’s average amount of savings for retirement is just $200,000, while 30 percent of older Americans live below the poverty line and 43 percent of pre-retirement age people have no savings at all.
Thus, millions of baby boomers find themselves financially unprepared for old age. This will place an additional burden on the healthcare system, government programs and the economy. Young people will have to care for elderly parents, government spending on the elderly will increase, and economic growth may slow down.
Already, 23% of Americans are simultaneously caring for elderly parents and their own children. 60% combine work and caring for relatives. This causes stress, loss of income and reduced savings for younger generations.
As demand for care services increases and supply decreases, the government will need to allocate more money to social programs for the elderly. Otherwise, the real burden will fall on the shoulders of young people who are already having a difficult time under the current economic conditions.
Before that in the USA explained Reluctance to continue supporting Ukraine
Russians before promise There was an increase in almost all aid in February.