Survey Finds 1 in 4 Boomers Have No Savings, Why Americans Are Afraid They Can't Make Ends Meet In Retirement

More Americans, particularly those aged 50 and older, are growing concerned that they won't be able to make ends meet in retirement. A recent AARP survey confirms this concern by revealing that 1 in 4 people in this demographic have no retirement savings. 

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Among the many reasons this segment of 50-year-olds and older are concerned they won't be able to afford retirement is accumulated debts. Gen X (ages 43-57) had an average debt of $157,556 in 2023, while Boomers (ages 58-77) had an average debt of $94,880. 

Plus, this generation’s average retirement savings doesn't exactly bode well for paying off debts and providing a livable income during retirement. Recent data shows that the average retirement savings is $313,220 for ages 45-54, $537,560 for ages 55-64, $609,230 for ages 65-74, and $462,410 for ages 75 and older. 

The rising cost of living is also a serious concern for many Americans. In fact, AARP reveals that 73% of Americans are concerned about rising prices. While inflation has slowed down a little since its rise in 2020-2022, the uncertainty of the global economic climate since COVID-19 has remained a pressing issue regarding finances. 

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The fears around depleting Social Security funds likely also contribute to anxiety about retirement. By 2035, recipients of Social Security will only receive about 83% of their full benefits. And nearly 50% of retirees count on their Social Security checks for at least half of their retirement income. 

So, with all of these fears around retirement, why are there so many people who don't have retirement savings? 

A lot of it comes down to the cost of living. Rent, mortgage payments, and other everyday living expenses are the biggest reasons people can't save for retirement. Debt plays into this as well, particularly credit cards and school loans. The financial strain of repaying these debts and keeping up with rising living costs makes it difficult to put any money toward retirement. 

Due to these financial pressures, more older Americans are returning to the workforce. According to the Pew Research Center, nearly one in five Americans ages 65 and older were employed in 2023, almost double the number employed 35 years ago. 

Dave Ramsey, famously known for his financial advice, frequently tells callers with retirement concerns that they need to live below their means so they can start saving. Sell the car for something cheaper. Sell any assets (besides the house) that are accumulating debt. Sell everything and start living as meagerly as possible to save for retirement. 

As concerning as these retirement fears are, they are not impossible to overcome with the right help. A trusted financial advisor can provide a fresh look at your finances to help you see things you may have overlooked or offer advice you hadn't considered. Take the steps to overcome retirement fears and achieve a more stable financial future. 

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