Twenty percent of Americans aged 50 or more years have no retirement savings, and more than 50% worry they will not have enough money to support themselves in retirement. That’s according to a recent survey from AARP.
Thirty percent of 50+ Americans surveyed said that, in addition to a lack of retirement savings, they are carrying credit card debt of $10,000 or more with them into retirement. Of those, 12% said their credit card balance was $20,000 or more.
“America is facing a serious retirement crisis. AARP has a long history of supporting legislation to expand access to retirement savings, but Congress must act more swiftly to provide the financial support older Americans need and deserve,” AARP Executive Vice President and Chief Advocacy & Engagement Office Nancy LeaMond stated.
“We have worked with 19 states to create programs to make it easier for people whose employers don’t offer a retirement plan to be able to save for their future. But about two-thirds of states have yet to act, and we await action from the federal government,” LeaMond added.
According to AARP, nearly 57 million American workers do not have access to an employee-sponsored retirement plan. The data show that those who do have access to a retirement plan at work are 15 times more likely to save for retirement.
“Every adult in America deserves to retire with dignity and financial security. Yet far too many people lack access to retirement savings options and this, coupled with higher prices, is making it increasingly hard for people to choose when to retire,” AARP Senior Vice President of Research Indira Venkateswaran said. “Everyday expenses continue to be the top barrier to saving more for retirement, and some older Americans say that they never expect to retire.”
AARP noted that Congress is currently considering legislation that would expand retirement security — the Retirement Savings for Americans Act of 2023, which would provide retirement savings accounts to eligible workers without employer-sponsored retirement plans, and the Automatic IRA Act of 2024.
