Experts Say Two Out of Three Baby Boomers Will Struggle Financially During Retirement
It’s being called a “silver tsunami.” Between now and 2030, more than 30 million baby boomers will turn 65 and reach the traditional retirement age. According to an article by MoneyWise, two-thirds of them are not financially prepared for retirement.
It cites a study by the ALI Retirement Income Institute, a non-profit focused on retirement education, that found that over half of all “peak boomers” lack the retirement savings to allow them to maintain their standard of living. The concern is that these new retirees will quickly run through their limited savings and end up relying on Social Security.
Keep in mind, the Social Security Administration says these benefits are intended to replace just about 40 percent of a person’s annual pre-retirement earnings.
Making matters worse, the Social Security trust fund is projected to run dry in less than ten years, at which time there will only be enough reserves to pay beneficiaries about 80% of their scheduled benefits.
Solvency Plan
The Seniors Trust believes the best way to save Social Security — and ensure it is around far into the future for baby boomers and future generations of hardworking Americans — is the Social Security Expansion Act. This landmark bill buttresses the long-term solvency of Social Security by expanding benefits for seniors — not cutting them!
When passed, this legislation will require the wealthiest Americans to pay their fair share. This legislation would lift the income tax cap and subject all income above $250,000 to additional Social Security payroll tax. Under this bill, more than 93 percent of households would not see their taxes go up by one penny.
It would also expand Social Security benefits by $200 per month across-the-board. Retirees would not need to hold off until full retirement age to achieve bigger benefits.
If you agree that this is a viable means of solving Social Security’s solvency issues, please show your support by signing our petition to Congress and join us as we work to improve the lives of senior citizens.
