We are facing an unprecedented retirement crisis in this nation. Millions upon millions of Baby Boomers are retiring, and most of them are struggling. In fact, it has been estimated that 80 percent of our retirees are either struggling right now or are in serious danger of falling into financial insecurity. We are supposed to be the economic powerhouse of the world. How could we have allowed this to happen?
There are several reasons why our retirement crisis has become so severe.
First of all, people are living significantly longer than they did decades ago, and so retirees need more money these days.
Secondly, most retirees did not save enough for retirement, and many of them entered their retirement years carrying high levels of debt.
Thirdly, healthcare costs are completely and utterly out of control in this country. We desperately need to do something about this.
Fourthly, high inflation has made the cost of living extremely oppressive.
Fifthly, pension plans are less common then they once were, and so more retirees than ever are depending upon Social Security as their primary source of income.
When you step back and consider the big picture, it is clear that we have a major problem on our hands, and there are no easy solutions.
The following are 18 incredible statistics about America’s retirement crisis that will blow your mind…
#1 Back in 1940, the average life expectancy of a 65-year-old was about 14 years. Now, it is over 20 years.
#2 The number of Americans that are 65 and older will rise to about 77 million by 2035.
#3 Americans that are retiring now will need an average of $1.22 million to last thirty years in retirement.
#4 Only about half of all U.S. households currently have retirement savings accounts.
#5 One recent survey found that 93 percent of Republicans, 86 percent of Democrats, and 94 percent of independents believe that there is a retirement savings crisis in this country.
#6 47 million U.S. households with older adults are either “financially struggling” or are “at risk of falling into economic insecurity”.
#7 Approximately 80 percent of Americans have thought about putting off retirement due to financial reasons.
#8 Over 90 percent of Americans are concerned that they may have to work more years than they originally planned.
#9 There is supposed to be approximately 2.7 trillion dollars in the Social Security trust fund, but our politicians took all of that money and spent it instead. Today, our Social Security trust fund is simply a colossal pile of government bonds.
#10 Social Security is the primary source of income for most Americans over the age of 65.
#11 According to the National Academy of Social Insurance, 33 percent of Social Security recipients receive all or nearly all of their income from Social Security.
#12 Nearly nine out of ten people age 65 and older are receiving Social Security benefits.
#13 In 2009, nearly 51 million Americans received $672 billion in Social Security benefits. In 2024, nearly 68 million Americans received $1.5 trillion in Social Security benefits.
#14 More than 180 million U.S. workers have earnings covered by Social Security, and they pay approximately 1.2 trillion dollars in Social Security payroll taxes.
#15 As you can see from the previous two items, our Social Security payroll taxes are not enough to cover the amount being paid out in benefits.
#16 The average Social Security benefit for a retired worker in the U.S. was $1,922 per month in September 2024.
#17 Back in 1950, each retiree’s Social Security benefit was paid for by 16 workers. In 2010, each retiree’s Social Security benefit was paid for by approximately 3.3 workers. By 2035, it is being projected that there will be approximately 2.4 workers for each retiree.
#18 Close to 50 percent of all American workers do not believe that the Social Security system will pay them benefits when they retire.
Needless to say, our federal government is facing an unprecedented financial nightmare, and our retirement crisis is a big reason for that.
Social Security accounts for approximately 21 percent of the federal budget, and Medicare accounts for approximately 14 percent.
That means that those two programs alone account for more than a third of all federal spending.
The politicians in Washington would never dare to make cuts to those programs, because elderly voters would revolt in a major way.
So if we are going to do anything to get our exploding debt under control, cutbacks will have to occur elsewhere.
But we desperately need to do something, because our 36 trillion dollar national debt is growing very rapidly and it threatens to overwhelm us.
We are in so much trouble.
As our debt continues to explode and general economic conditions continue to deteriorate, I expect the plight of our retirees to continue to intensify.
And that is not good news for any of us.
Michael’s new book entitled “Why” is available in paperback and for the Kindle on Amazon.com, and you can subscribe to his Substack newsletter at michaeltsnyder.substack.com.
About the Author: Michael Snyder’s new book entitled “Why” is available in paperback and for the Kindle on Amazon.com. He has also written eight other books that are available on Amazon.com including “Chaos”, “End Times”, “7 Year Apocalypse”, “Lost Prophecies Of The Future Of America”, “The Beginning Of The End”, and “Living A Life That Really Matters”. When you purchase any of Michael’s books you help to support the work that he is doing. You can also get his articles by email as soon as he publishes them by subscribing to his Substack newsletter. Michael has published thousands of articles on The Economic Collapse Blog, End Of The American Dream and The Most Important News, and he always freely and happily allows others to republish those articles on their own websites. These are such troubled times, and people need hope. John 3:16 tells us about the hope that God has given us through Jesus Christ: “For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life.” If you have not already done so, we strongly urge you to invite Jesus Christ to be your Lord and Savior today.