New research indicates that a majority of retirement-bound Americans will be financially worse off than their parents, putting at risk a long era of high living standards, reports The Washington Post.
The Great Recession and the weak recovery are considered the culprits
. The economic downturn destroyed 40% of the personal wealth of USA citizens
. High unemployment and low-interest savings accounts have made matters worse
. The surge in the stock market is mainly benefitting wealthy Americans
. A growing number of retirees may be living with children or seeking social-service programs
Possible solutions may be:
. Bolstering of Social Security benefits federal government
. Creation of a new layer of retirement help for future retirees
. Encouragement from employers and goverment to bulk up on retirement savings
. Education to discourage workers from using the money for non-retirement purposes
Obstacles to these solutions, include:
. Concern about the nation’s fast-growing long-term debt
. The political climate to reduce Social Security and other retirement benefits
. Rise in health-care costs
. Growing debt among older Americans
. Rise in employers shifting retirement benefits to workers
Teresa Ghilarducci, director of New York City's Schwartz Center for Economic Policy Analysis at the New School for Social Research, told the Washington Post: “This is the first time that Americans are going to be relatively worse off than their parents or grandparents in old age.”