Think your standard of living is not the same as it used to be? You’re right about that. Americans have lost over a third of their purchasing power in the past decade, and the biggest share of that loss happened in the past three years.
For millions of retirees, and workers reaching retirement age in 2023, inflation and the rising cost of living have been particularly detrimental. While many Gen Z, Millenial, and Gen X households were forced to downsize their life to make ends meet, older Americans – some of whom had already retired – are being forced to come back to the workforce as they can no longer afford their basic expenses. Even those who saved and did everything right throughout their working years face the risk of financial insecurity in retirement, especially as we march toward another recession.
This problem is growing worse with each passing generation, and eventually, it will hit the lives of each and every one in the United States. Today, we compiled a series of facts and starts that expose the brutally honest truth about this worrying crisis, and why most people won’t be able to retire at 65.
The standard of living for Americans has fallen longer and more steeply over the past three years than at any time since the US government began recording this data in 2007. Since 1971, the U.S. dollar has lost 98% of its purchasing power, with 35% of that loss happening between 2013 and 2023. For retirees, this situation has been a living nightmare. Data from the National Institute on Retirement Security reveals that 44% of older Americans who retired in the past three years have gone back to work due to a lack of savings.
The Bureau of Labor Statistics published figures showing the number of people in the labor force who are 75 and older grew 53.7% from 2012 to 2022 and is projected to grow 96.5% between 2023 and 2033. It’s such a dramatic increase that this is the only age group projected to increase its share of the workforce, from 8.9% in 2020 to nearly 14% in 2030.
The truth is that many seniors didn’t have the retirement savings they thought they have, and that’s because they’re not expecting the cost of living to rise so much so fast. About 61% of Americans aged 65 to 75 who came back to the labor force in recent years say they are not confident they will have enough money to cover basic monthly expenses if they stop working, NIRS data reveals. Meanwhile, 51% of consumers between 45 and 75 feel they do not have enough retirement savings to last their lifetime.
The institute estimates that 27 million people nearing retirement age will see a drop in their standard of living in retirement. The dream of retiring at the age of 65 will be just that for most Americans. Each generation is getting poorer than the one before as the U.S. middle class continues to shrink. With fewer good paying jobs around, planning for a secure financial future remains out of the reality of many people, who are struggling to make ends meet right now.
This means we will only have two choices and none of them are good: Either we or until we die or we risk facing poverty in our senior years, even after an entire lifetime dedicated to our jobs. At the end of the day, this is a reflection of the decay of the American economy, and a major proof that our retirement system desperately needs to be fixed.
Article and video cross-posted from Epic Economist.
Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
It’s hard to have retirement savings when hubby decides after #2 son is born that he doesn’t want to be daddy anymore. So I had to raise them alone and it was more important to keep a roof over their heads and food on the table and keep them healthy than have a retirement plan. There just wasn’t enough money to go around.
Woman have to be more careful about who they sleep with. Hitting the sack with any low life with a fine line of BS isn’t an option.
When the Boomers hit their 80s it will be chaos as there are nowhere near enough elder care facilities and even worse, nowhere near enough staff. Any Boomer that isn’t Biden rich will be bankrupted within months. Obama demonstrated his hatred for white Boomers – which made it OK for the Democrat Party to officially abandon them and pursue economic policies that guarantee social chaos.
People are simply living far too long.
Not to worry about elder care for “boomers”…the real issues will involve the entire population. Serious constraints are going to be increasing as permanent vax-injuries create an unplanned burden on caregivers, assisted living facilities, and other healthcare agencies. Then there are the deaths that continue to occur due to the ‘safe and effective’ toxic injections. Not enough worker-bees, caregivers, or facilities will be realized before long.
$429.61 after a discount. That’s what I spent last night for 2x sleeping bags and a pocket knife for my daughter. So ya, I don’t imagine social security is going to take a person very far these days.
Another day, another “crisis of our lifetime”.
Another day, another collapse of America.
The statistics quoted here are false. Do you authors understand basic math? Since 1971 we have lost 98% of our purchasing power. Really? Then there is the labor participation rate for seniors.
Work till you drop is the only solution. Retirement is for wusses.