It turns out, half of American retirees aren’t actually retired! A new report shows that many people are forced to go back to work during their supposed golden years because they don’t have enough money to live comfortably.
Millions of Seniors Still Working
According to CBS, there are 11 million Americans over 65 who are still working. One couple, Garry and Joyce Gesseck, are a prime example. Garry, 77, works unloading trailers at a supermarket for $14.75 an hour, while Joyce, 66, works full-time as a legal administrator for $14 an hour. “It’s not really a retirement,” Joyce says, “It’s working every day.”
The 401(k) Problem
Labor economist Teresa Ghilarducci blames the rise of “work, retire, repeat” on the 401(k), a retirement savings plan introduced in 1978. “More than half of the people who are retired right now do not have enough money to be retired,” she says. “I blame the policymakers who experimented with our retirement system 40 years ago, and they are not saying the experiment failed.”
The 401(k) has been criticized for not being effective, especially for lower-income earners. Their retirement savings often don’t keep up with inflation. A report from Politico found that retirement accounts for most people, except the highest earners, have remained flat for decades after adjusting for inflation.
A Difficult Reality
Even with Social Security, old pension funds, and their paychecks, the Gessecks only have about $50 left over each month. “It’s stressful now, but I think we can see the light at the end of the tunnel,” Garry says.
This situation highlights a serious problem in the American retirement system. Many people are struggling to make ends meet in their retirement years, and the current system doesn’t seem to be working for everyone.
