Retirees Face an Unexpected Financial Challenge

Retirees spend their lives saving for that day they no longer have to go into the office or the factory and can finally enjoy their golden years. Surprisingly, however, many retirees find that they face an unexpected challenge once they leave the workforce.

A recent story from CNN shows that many Americans spend a significant portion of their adult lives saving for retirement and end up having difficulty spending in retirement. According to David John, a senior strategic policy advisor at the AARP Public Policy Institute, many retirees find the transition from saving to spending to be psychologically difficult.

This makes a lot of sense when you think about devoting decades to saving money. While retirement planning is extremely important, it’s hard for retirees to move out of the nest egg-building mindset once they have started their retirement. To make matters worse, the financial risks for seniors make it more important to be frugal.

High medical bills, increasing drug prices, skyrocketing housing costs, and unexpected life events, can put a huge dent in savings in the blink of an eye. Understanding this, it’s reasonable that retired Americans would be cautious with their spending. It’s sad, however, that after a lifetime of work, seniors now have to stress even more about money management. Read the full CNN article here.

Part of the problem that seniors face is the issue of Social Security benefits that do not go far enough. If these benefits were sufficient, seniors might be able to enjoy their retirement without stressing so much. This is why we support a bill we call The Greatest Generation Benefits Act. Learn more about this important legislation and sign our petition here.