The nation is rapidly approaching “peak 65” as younger baby boomers turn 65 this year, initiating the biggest wave of retirements in U.S. history. Yet most of those Americans are financially unprepared to stop working, and many risk living in poverty, according to a new analysis.
The retirements of the youngest boomers — those born between 1959 and 1965 — are likely to reshape the U.S. economy, and not in entirely positive ways, according to the study from the ALI Retirement Income Institute, a non-profit focused on retirement education.
The new research underscores the impact that income and wealth inequality has had on a generation that, at least on aggregate, is the nation’s wealthiest. Boomers who are White, male or have college degrees are the most likely to be financially prepared for retirement, but many people of color, women and those with only high school educations are lagging, the study found.
“America has never seen so many people reaching retirement age over a short period, and well over half of them will find it challenging to meet their needs through their retirements, let alone maintain their current standard of living,” said Robert J. Shapiro, a co-author of the study and the chairman of economic consulting firm Sonecon, in a statement.
The findings echo other research that has found more than 1 in 4 older workers are nearing retirement without a penny in savings. While many younger people have yet to start putting money for their later years, it’s more concerning for younger boomers approaching retirement age given they have only a few years left to sock money away.
Read more at CBSNews.com
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