It’s no secret that many Americans struggle to retire comfortably. A recent study showed that nearly half of adults (50% of women and 47% of men) in the U.S. have no retirement savings. So, what are the reasons behind this alarming statistic? Read on to find out.
Lack of Retirement Plans
Many employers, tiny businesses, don’t offer their employees any retirement plan. This leaves workers on their own to save for retirement, which can be daunting. In addition, employees who don’t have access to employer-sponsored retirement plans are at a severe disadvantage when it comes to saving for the future.
High Costs of Living
The cost of living in the U.S. is relatively high, especially in major metropolitan areas. This makes it difficult for many people to save money after paying their bills and putting food on the table. As a result, retirement savings are often an afterthought for those struggling to make ends meet.
The stock market is notoriously unpredictable, making investing for retirement a risky proposition. In addition, many people are hesitant to invest in the stock market because they’re worried about losing their hard-earned money. This fear can cause people to put off investing for retirement until it’s too late.
There’s a lot of economic uncertainty these days, making it difficult for people to feel confident about their prospects. This uncertainty can lead people to horde their cash instead of investing it wisely for retirement.
Poor financial literacy
Many Americans don’t understand the basics of personal finance and investing. This lack of financial literacy makes it difficult for people to make sound decisions about their money, jeopardizing their ability to retire comfortably.
These are just a few reasons why many Americans struggle to retire comfortably. Thankfully, some things can be done to mitigate these factors and help ensure a comfortable retirement for everyone, and the government can help with this. Here’s how.
Change the Stigma of Bankruptcy
Many people think that filing for bankruptcy is bad. However, this isn’t always the case. Sometimes bankruptcy can be the best thing for someone struggling to get by. This is especially true for those with a lot of debt and struggling to make their monthly payments.
Debts might pile up for many employees, and it can be challenging to pay for them. The government helping them file for chapter 13 bankruptcy might be one of the best options they’ve got. This is because it can help restructure their debt and make it more manageable. It will also give them a clean slate to work with, and they might be able to get rid of some debts entirely. This is crucial if they are planning for retirement.
There are many reasons why people might not want to file for bankruptcy, but the truth is that it can be a beneficial tool for those struggling to make ends meet. The government can help change the stigma surrounding bankruptcy and make it more acceptable for people to seek this option when needed. In addition, it can give them a fresh start to save for retirement, as long as they don’t make it a habit.
Provide Access to Retirement Plans
The government can also help by providing access to retirement plans for those who don’t have them through their employer. This would go a long way in assisting people in saving for retirement. It would also level the playing field between those who have access to employer-sponsored retirement plans and those who don’t.
Support Seniors Who Are Struggling
Many seniors struggle to make ends meet, and the government can help them. Here are some ways to do that:
Increase Social Security Benefits
Seniors’ benefits from Social Security are often not enough to live on, especially if they’re living in a high-cost area. However, the government can help by increasing the amount of these benefits.
Provide Tax Relief
Seniors are often on a fixed income, so they struggle to make ends meet. The government can provide some tax relief to ease the burden on these seniors.
Give Access to Affordable Healthcare
Seniors often have difficulty paying for their healthcare costs. The government can help by making healthcare more affordable for seniors. Medicaid and Medicare are two programs that can help with this.
Improve Disability Benefits
Seniors are susceptible to disabilities, and the government can help by providing better benefits for those who are disabled. These benefits can help seniors stay afloat financially and improve their quality of life.
The government can help Americans retire comfortably by taking some of the burden off them. These are just a few ways to do that. Once the government takes action on these fronts, we’ll see more people retiring comfortably.