AARP is Working to Turn the Tide at the State
and Federal Levels, With at Least 19 States Taking Action to
Date
WASHINGTON, April 24,
2024 /PRNewswire/ -- A new AARP survey finds that 20%
of adults ages 50+ have no retirement savings, and more than half
(61%) are worried they will not have enough money to support them
in retirement. The findings also reveal a decline in overall sense
of financial security among men, 42% of whom describe their
financial situation as "fair" or "poor," up from 34% in the
beginning of 2022. However, roughly 40% of men who are regularly
saving for retirement believe they are saving enough, compared to
just 30% of women.
"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,"
said Indira Venkateswaran, AARP
Senior Vice President of Research. "Everyday expenses continue to
be the top barrier to saving more for retirement, and some older
Americans say that they never expect to retire."
Nearly one-third (30%) of older adults who carry over a credit
card balance from month-to-month report carrying a balance of
$10K or more, while 12% described
their balance as $20K or more, up
from 8% roughly a year ago.
Despite this, 33% of respondents ages 50+ believe their
finances will be better 12 months from now, but the lingering
effects of inflation and high costs are still apparent:
- More than one-third (37%) are worried about covering basic
expenses, such as food and housing.
- More than a quarter (26%) are worried about covering family
caregiving costs.
- Seven in 10 (70%) are worried about prices rising faster than
their income.
- Over a quarter (26%) of people who are not yet retired say they
expect to never retire.
"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," said
Nancy LeaMond, AARP Executive Vice
President and Chief Advocacy & Engagement Officer. "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."
Americans are 15 times more likely to save for retirement when
they have access to a workplace plan. Yet nearly 57 million people
do not have access to a retirement plan at work.
Congress is currently considering different pieces of
legislation that would expand retirement security, including the
bipartisan 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.
Eight states have auto-IRA programs up and running: California, Colorado, Connecticut, Illinois, Maine, Maryland, Oregon, and Virginia, while Massachusetts has a multiple employer plan in
place. Ten other states have passed legislation and are at various
stages of implementation, including Washington, where auto-IRA legislation was
signed into law last month.
To view the full Financial Security Trends Survey and
methodology, visit aarp.org/financialtrends. And learn more about
AARP's ongoing efforts to make it easier for everyone to save for
retirement.
About AARP
AARP is the nation's largest
nonprofit, nonpartisan organization dedicated to empowering
Americans 50 and older to choose how they live as they age. With a
nationwide presence, AARP strengthens communities and advocates for
what matters most to the more than 100 million Americans 50-plus
and their families: health security, financial stability and
personal fulfillment. AARP also works for individuals in the
marketplace by sparking new solutions and allowing carefully
chosen, high-quality products and services to carry the AARP name.
As a trusted source for news and information, AARP produces the
nation's largest circulation publications, AARP The Magazine and
AARP Bulletin. To learn more, visit
www.aarp.org/about-aarp/,
www.aarp.org/espaƱol or follow @AARP, @AARPenEspaƱol
and @AARPadvocates on social media.
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SOURCE AARP