The US Economy policy has never been quite the best for the middle class workers. According to a recent survey conducted by the Schwartz Center for Economic Policy Analysis, nearly half of the middle class Americans enters the poverty range as soon as they approach their retirement. The lack of savings and the blistering increase in the health care cost is pushing 74% of the Americans to work past traditional retirement age.
Not only this, the US economy policy is under-funding both the private and public sector pension plans. Taking this in consideration, the study also revealed that roughly 40% of the middle class Americans will slide into poverty by the age of 65.
The detailed study also revealed that if the current working professionals of 50-60 years of age decide to retire at the age of 62, 8.5 million of them will twice below the FPL (Federal Poverty Level). The retirement incomes for such singles will be $23,340 and $31,260 for couples.
But who’s to blame? It’s a pretty debatable topic and shouldn’t be pondered upon.
Source- The Motley Fool
The employers and the employees need to focus on a fix. They have to have a good personal savings planning till their retirement. And yes, all the sponsors of the pension plans, gratutiy, whether private or government should do their part in the best possible manner.