America is grappling with a significant shift that endangers the financial stability of its older adults. As private industry transitioned from employer-managed defined benefit pensions to self-directed defined contribution programs, many Baby Boomers found themselves unprepared for this drastic change. The consequences have been severe, creating a ripple effect that impacts an entire generation of Americans.
Too many older adults now rely heavily on Social Security for most, if not all, of their retirement income. According to AARP, about 1 in 7 (about 14%) retirees depend on Social Security for 90% or more of their income. As of August 2024, the Social Security Administration reported that the average Social Security check is $1,920. Without substantial additional savings, many retirees are left in poverty or on the brink. This troubling reality stems from a lack of foresight and financial literacy, meaning many did not save adequately during their working years.
