Hopes for retirement remain a long shot for many

By Cameron Montemayor

One of the allures of the American dream is being able to enjoy the later years of life in retirement after decades of hard work, but for a growing number of people in the U.S., the odds of successfully retiring remain a long shot.

Nearly a quarter of adults age 50 or older who aren’t yet retired doubt they ever will, according to a recent AARP survey of more than 8,000 people.

With nearly 16.5% of St. Joseph’s population — more than 11,500 people — age 65 or older, according to census data, that could mean thousands in St. Joseph are facing the same reality.

Retired Union Star resident Janis Consolver is fortunate that she and her husband, Rick, started saving early and have enough money now to be able to cover expenses like medical bills for Rick’s lung transplant.

“Most people think when you’re young, ‘I’ll be fine.’ And you don’t think about putting away money for that kind of thing and think, ‘I’ll have my Social Security.’ Well, that really doesn’t cut it,” Consolver said. “If people think they’re going to live on their Social Security alone, it doesn’t cut it.”

Having worked in the medical field for a large part of her career, Consolver has seen how high costs for insurance and medical bills can compromise a person’s ability to save for retirement and in some cases, force them out of retirement to cover expenses.

“It’s a challenge for a lot of people to retire under 65,” she said. “Some folks just work for insurance because insurance is so high, you just can’t afford to retire without having, you know, some good insurance.”

Consolver said putting aside even as little as $20 a week can make a difference for those looking to build a healthy retirement fund.

An even more alarming finding from the survey: More than a quarter (31%) of participants said they have no retirement savings at all, which marks a 4% increase from the year before.

Saving for retirement can be extremely difficult when many adults age 50 and older are reportedly struggling just to cover basic living expenses. Nearly 37% of survey participants are worried about meeting costs for things like food and housing.

“I see a lot of older folks that are working fast food and just doing little things just to get some extra money to help them in their retirement years, because it’s just not enough to cover it,” Consolver said.

Along with rising prices for groceries and utilities, numerous factors are contributing to the challenges many citizens face now with preparing for retirement, from mounting credit card and student loan debt to declining 401(k)s and poor saving habits.

Stock market losses contributed to a near 20% decline in the value of the average 401(k) from 2021 to 2022.

“More and more employers are going to the 457 form or 401(k)-type of plan for retirement. And when you’re relying on the stock market for your retirement, it can be really scary,” said Julie Noel, manager of St. Joseph’s Joyce Raye Patterson 50+ Activity Center. “You’re just not sure if it’s going to hold. And what’s going to happen to it when it’s time for you to retire?”

Amid rising costs, Noel has heard from many about how difficult it can be to set aside money in today’s economic landscape.

“When I read that … I was not surprised at all that there are people concerned about not being able to retire,” she said. “I know the federal government’s working on different things to try and help people with retirement in the future because it’s a concern for them as well.”