An AARP survey reveals that more than a quarter of U.S. adults over 50 expect never to retire, and 70% are worried about prices rising faster than their income. The research, released on Wednesday, shows that about 1 in 4 older adults have no retirement savings, highlighting the growing concern among aging Americans about making ends meet, despite economists and policymakers saying the U.S. economy has nearly achieved a soft landing after two years of near-record inflation.
The main reasons people are unable to save for retirement are everyday expenses and housing costs, including rent and mortgage payments. The AARP’s study, based on interviews with over 8,000 people conducted in collaboration with the NORC Center for Public Affairs Research, found that one-third of older adults carry a credit card balance of more than $10,000, and 12% have a balance of $20,000 or more. Additionally, 37% are worried about meeting basic living costs such as food and housing.
The share of people over 50 who say they do not expect to retire has been steadily increasing, reaching 23% in January 2022 and 24% in July of the same year. David John, a senior strategic policy advisor at the AARP Public Policy Institute, attributes this trend to older workers not having sufficient retirement savings.
This issue is likely to be a key focus in the upcoming election year, as both Democratic President Joe Biden and Republican rival Donald Trump seek to win support from older Americans, who traditionally turn out in high numbers. Census data released Tuesday shows that voters 65 and older made up 30.4% of all voters in the 2022 congressional elections, while Gen Z and millennials accounted for 11.7%.
The financial health of Social Security and Medicare is another looming issue that will affect Americans’ ability to retire. The latest annual report from the program’s trustees warns that these financial safety nets for millions of older Americans will run short of money to pay full benefits within the next decade. An AP-NORC poll from March found that most U.S. adults oppose proposals that would cut into Medicare or Social Security benefits and support raising taxes on the nation’s highest earners to keep Medicare running as is.
The Associated Press contributed to this article.