No matter how prepared you think you are for it, nobody is ever truly ready for retirement. Some don’t have enough money to make it all the way through due to medical care. Others don’t have a plan for what to do with their time. Some will try to find hobbies or things to do, but it can often be difficult to pick up new things at an older age.
Thanks to President Joe Biden, 25% of these people no longer need to worry about this decision. For them, retirement is nothing but a pipe dream at this point. BMO Real Financial Progress Index conducted a quarterly survey between March 30th and April 25th. That survey showcases that 25% believe retirement is out of their grasp for at least one more year due to inflated prices.
With 36% of respondents reducing the amount they keep in their savings accounts, and 21% putting less than they previously did into retirement accounts, this isn’t a shocking percentage. In Biden’s inflation-tainted landscape, there is little to no hope for being able to retire with how little the dollar gets you. While this problem has been growing for decades, it’s grown at an alarming rate since Biden took office. His policies and ways of doing business have cost the American people greatly.
Head of consumer strategy at BMO Harris Bank, Paul Dilda, said “We haven’t seen this level of inflation in a very long time, and it’s very daunting.” He went on to explain how many people at or near retirement are failing to account for a bigger surge in costs for their financial planning, which is destroying budgets and timelines as well.
The 18 to 34 age group has been the most deeply affected. Over 60% of respondents have had to pull back their savings contributions to make up for the changes in the cost of necessities. With many having turned to investing to try to make up for the loss of buying power, the future isn’t looking much better. The S&P 500 is down 12% for the year, marking a glaring contrast from the grains made in 2021.
Those who have already retired are finding themselves running out of retirement funds much faster than anticipated. A quick depletion of funds and a lack of income resources from investments means they are left scratching their heads for what to do. Many of their children are happy to take them in – provided they have the room. With housing prices still skyrocketing, and interest rates going up, many are left looking at much smaller homes than their parents had.
For those who can take their parents in, it can help shave some costs, and having the grandparents around to help with the kids can be a big blessing. While it does little to solve the larger problem, it makes the transition easier and makes for a more stable budget within this ever-changing economy.
President Biden has been speaking up about these issues, but he is failing the American people more with each passing day. Especially his own generation. He lacks the foresight and dedication to making changes that are required to get the American people out of inflation, and away from this recession. His inability to lead should be leading to impeachment, but since the leftists and their campaign contributors are making money with his incompetence nobody is willing to try and push him out.
With any luck, the midterms will get people in public office that want to make things happen the right way, and who put all Americans first and not just special interest groups.