A new report reveals that 50% of American retirees lack sufficient funds to fully retire, forcing many to return to work during their golden years. CBS investigated this issue and found that 11 million Americans over 65 are still working. The report follows the Gessecks, a retired couple in Florida who are now back on the job to make ends meet.
Garry Gesseck, 77, wakes up at 5:30 a.m. to unload trailers at a supermarket for $14.75 an hour. His wife, Joyce, 66, works full-time as a legal administrator for $14 an hour.
American retirees face financial struggle
Joyce states, “It’s not really a retirement… It’s working every day.”
Labor economist Teresa Ghilarducci attributes the rise in failed retirements to the introduction of the 401(k) in 1978 as an alternative to traditional pensions. “I call it the ‘work, retirement, repeat syndrome.’ More than half of the people who are retired right now do not have enough money to be retired…
I blame the policymakers, who experimented with our retirement system 40 years ago, and they are not saying the experiment failed.”
The effectiveness of 401(k) plans has been questioned, particularly for lower-income groups whose retirement savings may not keep pace with inflation. Former Federal Reserve economist Alicia Munnell told Politico, “I am persuaded that these are bills designed for the high-earners and stuff for middle- and low-earners gets put in along the way to make the legislation less shameful.
The Gessecks, even with social security, old pension funds, and their paychecks, end each month with about $50 left over. Garry remarks, “It’s stressful now, but I think we can see the light at the end of the tunnel.”
This article sheds light on the difficult reality many American retirees face and the systemic issues within current retirement plans.
