Retirement is becoming luxury in US

ANOTHER VIEW | TAMPA BAY TIMES

Older adults add incredible value to America's work-force. But increasingly seniors are returning to work to merely make ends meet. Low savings, longer lives and a rickety safety net are combining to present new challenges, especially in Florida. It's a reminder that society benefits both from ready employment and from protecting Americans' golden years.

A survey released last month by AARP puts the sobering facts into perspective. One in 5 adults over age 50 say they have no retirement savings, and nearly two-thirds are worried they will not have enough money to support themselves in retirement.

Nearly one-third of older adults who roll over credit card debt report carrying a balance of $10,000 or more, while more seniors are racking up heavier debt from a year ago. While about one-third expect their finances to improve over the coming 12 months, a larger percentage is worried about prices outpacing their incomes and their ability to cover basic expenses.

The gloomy outlook raises red flags both for America's seniors and states like Florida that have long sold themselves as retirement havens. The figure of 1 in 5 adults over age 50 with no retirement savings came from interviews completed with more than 8,000 people, the AARP said. One-fourth also expect to never retire, a share that has steadily increased in the twice-yearly survey since 2022.

Seniors bring a wealth of value to the workplace, from life experience and varied skill sets to a reputation for being dependable. By 2030, according to the U.S. Bureau of Labor Statistics, nearly 12% of people ages 75 and older will be working, more than double the rate in 2000. They are a key age group whose participation in the workforce fills a critical need in the economy. Beyond earning a paycheck, many seniors also credit working with staying mentally sharp and socially engaged.

But it's one thing for Americans to work as long as they're able and interested. It's another when seniors are reentering the workforce because their finances and the social safety net forces them there. According to the latest annual reports, Medicare — the government-sponsored health insurance that covers 65 million older and disabled Americans — will run short of paying full benefits by 2031, while Social Security will run short of full benefits to 66 million retirees only two years later.

Government and business need to work across a range of fronts to protect pensions, bolster Medicare and Social Security and promote retirement savings plans to younger workers. Americans are 15 times more likely to save for retirement when they have access to a workplace plan .

Older Americans should be in the workforce by choice. That requires Americans to save more throughout their working lives, and for the government to adequately protect the nation's safety net for all retirees.