Americans Struggling to Save for Retirement Amid Economic Malaise

President Joe Biden / Getty Images
March 1, 2023

Older Americans are struggling to save for retirement in the Biden economy, pushing them to stay in the workforce longer.

While the average savings for a comfortable retirement for one person is around $967,000, according to the Federal Reserve, the typical account balance for retirement savings is just $144,000.

A staggering 40 percent of retirees say they live solely on income from Social Security, which pays out an average of $20,000 per year, CBS News reported. A Bankrate survey found that 55 percent of Americans are behind on the general recommended retirement savings rate.

The negative outlook for retirement comes as many Americans struggle with inflation and surging interest rates.

A recent poll found that half of Americans say they are worse off than they were a year ago, the largest total since the Great Recession. Bank of America on Wednesday warned customers that the Federal Reserve will raise interest rates "to the point of pain" as inflation shows no signs of easing.

The poor economic outlook is forcing seniors to push back their retirement, CBS News reported:

Senior planning executive Daniel Fitzpatrick's original goal was to retire at 60. He's now 64 and still working. Fitzpatrick currently has an income in the low six-figures.

"The benchmarks move as I get older," Fitzpatrick said. Now, his goal is to retire at 70 and then "look for something part-time afterward."

Georgia residents, like Fitzpatrick, need about $850,000 to retire, according to GoBankingRates. He has about that much in savings, but regrets starting to save so late.

"If I had to retire and had to live on what I have now, I'd be much more worried," Fitzpatrick said.

Published under: Biden , Economy