Three Reasons Seniors Could be in Serious Financial Trouble
By 2030, all 73 million baby boomers will have reached retirement age. Unfortunately, as MoneyWise reports, many are woefully prepared for this next phase of life. Here are three reasons so many seniors might be facing serious financial trouble:
Inadequate retirement savings – Studies show the median balances were $71,168 for those 55 to 64 and $70,620 for Americans 65 and up. Even when you add in the average monthly Social Security benefit, which is only $22,884 per year, it’s clear that most retirees do not even have enough money to cover basic expenses.
Social Security solvency – Making matters worse, Social Security is facing a solvency crisis. Its trust fund is nearing depletion. If Congress doesn’t take action, it’s predicted that in less than 10 years retirees will only receive about 80 percent of their promised benefits.
Increased debt – Many older Americans have been taking on personal debt, especially as inflation continues to remain high. It’s estimated that about 65 percent of households, ages 65-74, now carry debt, with about four million adults aged 65 and older having unpaid medical bills.
The Seniors Trust is committed to improving the financial well-being of America’s retirees through the passage of The Social Security Expansion Act. This landmark piece of legislation will give retirees an immediate benefits increase of about $200 a month, a fair annual cost-of-living adjustment (COLA), and increased minimum benefits.
