Half of American Retirees Forced to Work Due to Insufficient Savings
A recent report reveals that half of American retirees lack sufficient funds to enjoy retirement, leading many to re-enter the workforce during what should be their golden years.
According to CBS, around 11 million individuals aged 65 and older are still employed.
The Gessecks, a couple from Florida, exemplify this trend. Seventy-seven-year-old Garry Gesseck rises early to unload trailers at a supermarket for $14.75 an hour, while his 66-year-old wife, Joyce, earns $14 an hour working full-time as a legal administrator. Joyce expressed the reality of their situation, stating, “It’s not really a retirement… It’s working every day.”
Labor economist Teresa Ghilarducci attributes this phenomenon to the shortcomings of the 401(k) retirement plan, which replaced traditional pensions. She refers to the cycle as the “work, retirement, repeat syndrome,” emphasizing that many retirees simply don’t have enough to live on.
READ MORE: Kamala Harris Promises to Boost AI and Crypto Investments in 2024 Election Bid
Critics are increasingly questioning the effectiveness of 401(k) plans, especially for lower-income workers, whose retirement savings have failed to keep pace with inflation. Data from the Federal Reserve indicates that retirement accounts, aside from those of high earners, have seen stagnant growth over the decades.
Former Federal Reserve economist Alicia Munnell noted that legislation appears to benefit high earners while neglecting the needs of middle and low-income individuals.
Despite relying on Social Security, pensions, and their wages, the Gessecks are left with just $50 each month. Garry remains optimistic, stating, “It’s stressful now, but I think we can see the light at the end of the tunnel.”
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
