Americans who are reaching retirement age now are in worse financial shape than the prior generation for the first time since Harry Truman was president.
This cohort should be on the cusp of their golden years. Instead, The Wall Street Journal reports their median incomes including Social Security and retirement-fund receipts haven’t risen in years, after having increased steadily from the 1950s.
They have high average debt, are often paying off children’s educations and are dipping into savings to care for aging parents. Their paltry 401(k) retirement funds will bring in a median income of under $8,000 a year for a household of two.
In total, more than 40% of households headed by people aged 55 through 70 lack sufficient resources to maintain their living standard in retirement, a Wall Street Journal analysis concluded. That is around 15 million American households.
To make up for it, individuals will find themselves staying on the job past 70 or taking menial jobs as senior citizens. They’ll have to rely more on children for funding, pressuring younger generations, too, throwing their financial stability into uncertainty.
