Americans are Doing “Very Well” When Saving for Retirement

Does retirement savings reach a crisis? Pessimists want you to believe it. So let’s take a closer and comprehensive look at the facts.

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We are not facing a retirement crisis at the moment.

The latest study claims that “painting a disaster picture is wrong and leads to unjustified government action”.

According to the survey, less than 6 percent of Americans had earnings below the financial difficulty line five years before retirement. However, that rate dropped to 3.6 percent by the fifth year after retirement – a drop of one-third. According to the research, the triple pension system, namely Social Security, public and private pension systems, and individual savings, are largely responsible for reducing poverty.

retirement and you

These institutions work together to ensure that Americans, especially low-income Americans, may maintain or even enhance their standard of living in retirement.

To back up her claim that retirees are doing well. The latest study claims that the income of retirees has increased faster than that of working-age families since 1979: 109% higher than inflation for seniors versus 69% for working-age families.

The higher income of retirees has led to a lower rate of poverty among the elderly, which has fallen by more than two-thirds in the past five decades.

The legislation in the report aims to expand access to the retirement plan — but we’ll see if that happens. Some government plans aim to grow lifelong income options, codify new automatic transfer rules for the Department of Labor, and strengthen and expand Health Savings Accounts.

Supposedly, the government intends to simplify confusing Social Security laws, protect the temporary job economy, and help seniors become entrepreneurs to help those struggling to achieve retirement insurance.

According to this study, employees of small enterprises, who have low rates of assistance in employer-assisted pension funds, also need support.

Also according to the report – “Only 34% of employees at companies with fewer than 49 employees participate in an employer-provided retirement plan, compared to 77% of employees at companies with 500 employees or more.”

Retirement Planning

You and retirement

The Safety Act, approved in 2019, enables groups of companies to form pooled employer plans to reduce expenses and administrative and liability concerns that many small businesses cite as reasons for not having PEPs.

According to a senior manager, a survey of small business executives found that 85 percent of employers would find a PEP-like option “extremely useful or very beneficial” for providing economies of scale and cheaper costs.

Although PEPs include many businesses, they are said to be structured similarly to regular plans, in which employers can make similar payments. Politicians, along with state pension pools and other innovations, can help increase the number of small businesses with retirement plans, according to Shai Akabas, director of economic policy at the Bipartisan Policy Center.

the fourth power

The Fourth Estate is fond of claiming that Americans can’t save their money. They like to make us deal with the Japanese or the French who, as they say, hoard their fortunes like misers. But relatively, Americans have always been, and still are, savers.

The problem with retirement savings in America is that Americans incur far more expenses than other countries. For example, owning and operating a car in America is very expensive. Our gas is not subsidized.

Nor car insurance. or maintenance And public transportation in most parts of the United States is totally inadequate. If you live more than 10 minutes from your job, nine times out of 10, you’ll need a car to get to work because the bus or train won’t get you there.

Another example would be health care. Most countries now largely subsidize health care. But here in America, millions of people don’t have coverage or not enough coverage. So millions of Americans should spend their money on health care instead of putting it in the bank.

All things equal, Americans have always been happy and determined to save for a rainy day, especially for their retirement. But, unfortunately, it is almost impossible for Americans who are not millionaires to save enough money for their own comfort later.


The Biden administration has been doing wonders in supporting many sectors of the country. For example, extended Medicaid coverage should help low-income people approaching retirement age. In addition, help is needed for those who are approaching the so-called golden years.

But one aspect of the support pouring in from Washington is that Americans seem less inclined to save for a rainy day. Instead, they often feel it is their patriotic duty to shop until they drop or eat out rather than cook a home-cooked meal.

Meaning, home-cooked meals (outside of ramen) pasta are becoming as rare as snow in Tahiti.

Americans were doing “very well” when saving for retirement first came out on schedule.


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