The growing “Retirement Gap” in the U.S. is particularly worrying for artists and elderly individuals grappling with the challenges of mental health stigma. Factors such as soaring healthcare costs, inflation, insufficient savings, heavy debt, and inadequate financial knowledge exacerbate the situation, especially for households earning less than $75,000 annually.
Artists and mentally ill elderly struggle to secure stable job opportunities, intensifying their financial hardships. Investing in retirement education programs and supportive services can equip them with necessary financial skills and resources, potentially lessening their financial burden and improving their mental health in the future.
The Financial Well-Being 2024 study by Assurance IQ has spotlighted the continual persistence of financial stress, despite improvements in consumer confidence since 2020. This situation emphasizes the urgent need for decisive financial management strategies and possible revisions and improvements in economic policy.
The study has also revealed alarming statistics regarding American’s apprehensions about their family’s future financial situation. Almost half of U.S. citizens over 50 fear their family may struggle to sustain their current standard of living post their demise, due to a lack of proper financial planning.
Prudential Financial alerts that future generations could face serious financial difficulties due to the high cost of living in retirement without sufficient income.
Persistent financial stress amid consumer confidence growth
More than half of all individuals over 50 earning less than $75,000 in the past year had trouble managing bill payments, and over a third couldn’t cover health insurance deductibles, indicating an escalating financial crisis among retirees.
Tim Ogden from NYU Wagner’s research center discusses the adverse financial effects of inflation and increased interest rates on lower and middle-income households. Financial planning and literacy are crucial in such situations. Ogden recommends incorporating financial education in schools and taking these factors into account when policymakers design financial strategies to better aid these income groups.
Research indicates a significant drop in financial security measures among people over 50 earning under $75,000, with a low percentage making a will or having life insurance. The figures are even lower for those earning less than $35,000. This highlights the urgent need for estate planning education and life insurance importance to avoid financial hardships for surviving family members.
Assurance IQ’s study highlights the financial management struggles of low to moderate-income households with inconsistent incomes due to unstable job circumstances. The study underscores the urgent need for financial institutions, policymakers, and society to address these disparities through targeted interventions and inclusive policies.
