Rumors of a Retirement Crisis Have Been Greatly Exaggerated

On the other hand, the elder care crisis is all too real.

No. 65/September 25, 2024

NewScan is a biweekly briefing on news relevant to readers of The EndGame. NewScan is a premium feature exclusively for paid subscribers.

Most Retirees Are Okay Financially

Despite the persistent drumbeat of scary stories declaring that workers are not saving enough for a secure retirement,  86% in a Federal Reserve survey said they were either “doing okay” or “living comfortably.” Only 3% were “finding it difficult to get by.” There appears to be a gap between what workers think they need for retirement (aided and abetted by those scary stories) and what retirees say they can live on.

But Elder Care Costs Are Driving Families to Financial Ruin

The financial (and emotional) toll of both providing and paying for long-term care is wreaking financial havoc on millions of lives, concludes Dying Broke, an investigative report by KFF Health News and The New York Times. Long-term care costs have risen far faster than inflation, and the government programs to provide some cost reduction have not changed significantly since 1965. Unlike other wealthy countries, the U.S. has no coherent system of long-term care. Efforts to address the issue have faltered for lack of political will.

Be Careful What You Wish For

Paying taxes on Social Security benefits is one of retirement’s rudest surprises. So  proposals to eliminate the tax are popular, especially in election year. But here’s the catch: The taxes go back to the Social Security and Medicare trust fund reserves – therefore cutting the taxes brings insolvency even closer than current projections. As it stands now, Social Security benefits would have to be reduced 17% by 2035 unless further steps are taken to shore up the system.

Expecting to Age in Place? Remember to Plan

More than three-fourths of older adults intend to age in place. Fewer have given serious thought to what it will take to make that feasible. A solid plan includes the home’s physical design, its access to food and opportunities for exercise, proximity to health care, and the presence of community and social support.

Add Joy to Your Life: Try Something New

Trying new things can reignite a sense of adventure and fun, says coach Linda Butler. Adding play and fun into daily routines can reduce stress, boost mood, and enhance overall well-being. Playfulness also has social benefits and can help forge new friendships and connections.