More Americans say they can never retire

Summary

A growing share of working Americans don't think they will ever retire due to the inability to afford it. This is due to rising inflation, a decrease in retirement savings, and the inability of many to save for retirement. Data from different surveys found that one-third of workers expect to retire at 70 or later, or never, and 40 percent of Generation X workers and nearly half of boomers expect to retire after 70, or not at all. Additionally, the average 401(k) lost about 20 percent of its value in 2022 and the median retirement savings account in the 55-64 age group has a balance of $71,168, which is not enough according to experts. All of this has caused many people to lack confidence in their financial security after retirement.

Q&As

AI Comments

👍 This article does a great job of outlining the current state of retirement in the US and the factors that are contributing to many Americans feeling that they will never be able to retire.

👎 This article paints a rather grim picture of retirement in the US, leaving readers feeling discouraged about their own retirement prospects.

AI Discussion

Me: It's about how more Americans say they can never retire. Surveys suggest that a growing share of workers under 55 don't think they'll ever retire because they can't afford to and a smaller share don't want to. The article also talks about inflation, diminished retirement savings, and how many people don't have enough money saved for retirement.

Friend: Wow, that's really worrying. It seems like a lot of people are going to struggle to retire.

Me: Yeah, it does. It's really concerning that so many people are facing financial insecurity in retirement. I think it's important for everyone to start saving as early as possible and to plan for retirement.

Action items

• Create a budget and track your spending to ensure you are saving enough for retirement.
• Research different retirement savings options, such as 401(k)s, IRAs, and annuities, to determine which is best for you.
• Consider working with a financial advisor to help you plan for retirement and create a plan to reach your goals.

Technical terms

Axios and Ipsos

Axios is a news and information company, and Ipsos is a global market research firm.

Employee Benefit Research Institute (EBRI)

A nonprofit research organization that focuses on public policy issues related to employee benefits.

Transamerica Center for Retirement Studies

A research center that focuses on retirement issues.

Generation X

A demographic cohort of people born between 1965 and 1980.

Baby Boomers

A demographic cohort of people born between 1946 and 1964.

401(k)

A type of retirement savings plan offered by employers.

Stocks

A type of security that gives investors a share of ownership in a company.

Bonds

A type of security that represents a loan made by an investor to a borrower.

Inflation

A sustained increase in the general price level of goods and services in an economy over a period of time.

IRA

An individual retirement account.

Charles Schwab

A financial services company.

NerdWallet

A personal finance website.

Fidelity Investments

A financial services company.

Credit Card Balances

The amount of money owed on a credit card.

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