Table of Contents:
A growing alarm
A recent survey by the AARP Public Policy Institute raised a clear alarm about the pension savings situation in the United States. According to estimates, as many as 57 million private sector workers, about half of the workforce, do not have access to a retirement savings plan. This problem, which has persisted for decades, could have significant consequences for future taxpayers, as David John, senior strategic policy advisor at AARP, points out
.
The reality of retirement savings
A survey conducted in April revealed that 20% of adults aged 50 and over have no retirement savings. In addition, more than half of these individuals fear that they will not have enough money to support themselves during retirement. People aged 50 or 60 who are facing retirement without adequate savings are in a crisis situation, and this could turn into a systemic problem
for society.
The implications for society
According to John, if you don’t have savings to supplement Social Security, the company will have to face the cost of public assistance for those who haven’t had the opportunity to save. This scenario is worrying, as it could lead to an increase in taxes for everyone. Data from the Bureau of Labor Statistics shows that only 57 percent of companies with less than 100 employees offer a pension plan, while 86 percent of larger companies do. This gap highlights the need for greater awareness and access to pension plans
.
The situation in Italy
In Italy, the situation is not much different. A survey revealed that 97% of Italians consider it necessary to supplement their public pension, and 65% are convinced that a public pension alone will not be enough to live in dignity. In addition, there is growing concern among young people about the increase in the retirement age, which could exceed 70. This fear emerged from a study commissioned by Trade Republic, which analyzed the economic expectations of
the new generations.
Alternative savings options
A crucial aspect to consider is that many workers are unaware of the retirement savings options available outside of the plans offered by employers. Greg McBride, chief financial analyst at Bankrate, pointed out that a lack of access to a pension plan doesn’t mean you can’t save independently. There are individual retirement accounts that offer tax advantages and can be a good alternative for those who don’t have access to business plans
.
