People Can't Afford to Retire... Millions Are Doing It Anyway

I don't know if you've noticed this but everybody is getting old this year a record number of people will be turning 65 and the next year that record will be broken again we have been warned about aging populations for decades now and now it's actually happening unfortunately the savings retirement gap for millions of households is wider than it has ever been and people's assets have been eaten up by inflation bad Investments and Good oldfashioned Financial illiteracy over 20% of the people on the cusp of retirement no savings at all but that isn't stopping them millions

of people across the world can't afford to retire and they're doing it anyway so what the does this mean for everybody else baby boomers leaving their homes either because they're moving to Assisted Living centers or they're just no longer living in the last 10 years Milwaukee County saw a 22% increase of older residents in their 50s are generally at Peak earning potential yet more than half worry they'll run out of money in retirement is this the retirement that you imagined no no earlier this year the retirements income Institute released a commission study on retirement savings

the and I can't overemphasize how much I love the name of this report Peak Boomer's impact study found that between this year and 2030 30 million Americans will retire representing almost a fifth of the total labor force the study focused primarily on how those retirees plan to fund their retirement and the results were Grim more than half of the study group had less than $250,000 in assets including their home if they had one and that group would rely on Social Security as their primary or exclusive source of income in retirement now this study was conducted

by independent researchers but it was funded by a group that wants to sell annuities to people planning their retirement so some of their recommendations need to be taken with more than a bucket of salt however the study group of retirees getting too old to work are just one part of the larger group deciding that right now is a pretty good time to retire a study by Pew research has found that the largest wave of retirement has already happened as people step back from the workforce during Co assisted by a combination of record low interest rates

generous stimulus measures redundancy packages record asset prices and a general motivation to not go back into a plague infested office this is far from a uniquely American Trend in fact we are actually behind a lot of countries that are both older than us and have better support systems for people in their old age on top of hitting Peak rumor there are less typical retirees a growing number of independently wealthy young people who are pursuing Financial Independence where investment returns from their assets are enough to fund their lifestyle indefinitely and on the other end of the

spectrum there are people just giving up on working and are scraping by on Family Support government assistance or jobs in the informal economy these people aren't the typical demographic of retirees but they are still adding to the record Trend and they are all paying for this major financial decision in slightly different ways the first way is that they just aren't people don't always make entirely rational financial decisions whether it's buying a car in an 84-month Finance deal racking up credit card debt to buy luxury goods or just not understanding the importance of saving and investing

there is no shortage of people doing really dumb things with their money you are watching a channel that gives weekly depressing lectures on the state of the financial system business Trends and the economy so all of you are probably far more financially literate than the average person and even then you have probably made some dumb money mistakes people deciding to quit their jobs often aren't thinking entirely rationally and more people are just as setting that if they are going to be screwed financially in their old age they would at least like to enjoy a few

years while they still have their health and worry about finances once they are too old for it to be their problem for some people the decision is made for them layoffs Nationwide have hit people approaching retirement age particularly hard according to a survey conducted by the trans Amer Center for retirement studies most Americans are retiring 5 years earlier than they expected while this sounds like it's giving people more years to enjoy themselves the reality is that it's giving people fewer years to save and more years to cover and this is almost entirely involuntary according to

a study published by prop publica since 2016 56% of workers over the age of 50 lost their job involuntarily meaning they either got fired made redundant or laid off now that might not sound too bad but you have to remember that a lot of people over the age of 50 are choosing to leave their job because they are retiring on their own terms so the majority being let go is pushing a lot of people out of work once they are out older people are finding it much harder to find a job especially ones that pay

as well as the jobs they were laid off from companies don't want to hire older people because they think that they can't use computers they aren't going to be able to do physical work for as long as young workers in non-office jobs and there is the not so secret reality that Older Workers are normally less easy to take advantage of than younger workers with their whole career ahead of them it's technically not legal to discriminate against workers over the age of 40 although this law does not protect against discriminating against people under the age of

40 but that's a whole separate issue it doesn't matter anyway because any half competent hiring manager or human resources department could find a reason for hiring a young worker instead of an over 50 worker and this all means the same thing if people lose their jobs over the age of 50 they are almost forced into retirement whether they can afford it or not so it's time to learn how money Works to find out what this means for everybody else supporting a growing group of people who can't support themselves this week's lesson is sponsored by cook

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go to cook unity.com moneyi or click the link in the description and use my code moneyi to get 50% off your first order of cook Unity meals to try them out for yourself the topic of what to do with aging populations in countries across the world is something that is keeping a lot of policy makers up at night people are living longer and having fewer children which means more pressure is going to be put on a smaller group of young people or Ely people are going to have to make do with less of course a

lot of baby boomers are independently very wealthy as they have enjoyed a high level of job security an incredible asset price appreciation over their working careers a typical white-haired couple driving a gold buggy around a gated Floridian Retirement Village might be the first thing you think of when you think of Boomer retirees but these people are far from the average people of retirement age own more than half of the wealth of the country but that wealth is spread even more unevenly than it is over the general population there are some extremely wealthy Baby Boomers a

small group of Boomers who will be able to comfortably fund a nice retirement and millions who are fighting for What Little is left the question is really about what happens when this group just can't work anymore a study by the Stanford center on longevity found that even though baby boomers are the wealthiest generation in history as a whole they are still facing tougher retirement conditions on an individual basis than their parents dead some countries are pushing back retirement ages to squeeze a few more years of work out of people before they can receive a government

pension or access their advantage retirement savings accounts statistically most of you watching this video are either at the peak of your career or are only just starting which is why we have covered the problems you are likely to face if you don't already have a solid plan to retire but even if pushing back retirement benefits is a necessary evil it's going to be a hard sell retiring baby boomers are a large group and they vote the very mention of them needing to work a few more years is borderline political suicide most plans here in America

Center around pushing back retirement for young people who aren't close enough to retirement yet to care whatever the plan is it's not being helped by the millions of people who are dropping out of the workforce so the compromise is that the payments are stretched thinner according to Census Bureau data poverty rates amongst people over 65 has been on the rise as government programs haven't been able to keep up with General inflation and certainly haven't kept up with the spiraling costs for age Healthcare and Senior Living if people do re-enter the workforce it's normally into low

wage jobs that only help support other payments a study conducted by the American Society of Aging found that a fifth of older workers were making less than $15 an hour and that included people between 55 and 65 who should be at the penultimate years of their career the authors of this study also pointed out that a lot of this low-wage work is intense routine and almost always highly monitored in situations where a person controls neither the pace nor content of their work now you probably don't need an Institutional study to tell you that minimum wage

jobs are hard but they are even harder on old people with deteriorating Health which means it could be hard for them to keep this work even if they really need it when this happens the last line of support becomes relying on their adult children for care now the idea of your parents moving back in with you might be terrifying enough but the burden of being a caregiver to elderly parents is disproportionately falling on lower income households lower income households are less likely to be able to save adequately for retirement and are more likely to have

children that are also lwi income when those parents start requiring care from their children it can impact relationships career growth or even how many hours the adult child can put into their work additionally a dependent parent might be a direct financial burden if their assistance payments don't cover their expenses this means the children are going to be less likely to save for their own retirement creating a vicious intergenerational cycle so what was supposed to be a feel-good story about millions of people leaving behind the 9 to5 has turned into a lecture about the Grim Financial

landscape that millions of people are forced to contend with welcome to this channel by now you should know what you have signed up for but what can be done about this as a society not much unfortunately a lot of incredibly smart people are tackling the problem of Aging populations and the solution so far have been to get people to work longer and live on less individually though you need to assume that there is not going to be anything there to support you when you are too old to work pensions are already strained and if you

have a few decades left in the workforce there really is no guarantee it will exist at all for you and if it does it's probably only going to be enough to cover the bare necessities if that so try to set something as said in a 401k or whatever the equivalent is in your respective countries it's basic stuff but when so many people cannot or will not do the basics it could put you a long way ahead now this only applies to elderly retirees this problem is being made much worse by the millions of people leaving

the workforce decades before they would normally retire go and watch my video on why millions of men are simply choosing not to work and how they are surviving without even any of the supports available to regular retirees and don't forget if you want to get these videos a day early and stories that will never go up here on YouTube subscribe to my email newsletter to keep on learning how money works