Bidenomics Is A Disaster For Current & Future Retirees

A retiree’s income sources can include Social Security benefits, pension payments, annuity payments, tax-deferred IRAs or 401Ks, brokerage accounts and Roth IRAs. All have different rules on contributions and tax implications for withdrawals. There are two groups of retirees, those now retired and those who will retire in the future. All retirees will have difficulty managing life challenges with Bidenomics. For example, factors like inflation, Medicare, interest rates, taxes, and the potential for recession. These and other factors will impact those in retirement and those planning retirement. The overriding concern for both groups is that you cannot plan work history and retirement a second time. Today’s retirees are faced with fixed incomes and inflation close to 20%. Investments are slowly eroding away, even reserves. Future retirees are younger and still working. Some may have time to recover; current retirees will never have that option.

Current retirees include 18% of the U.S. population, individuals of all ethnicities many who defended the country. They were from the Silent and Boomer generations. Some are children of the Greatest Generation who experienced WWII and parents from the Great Depression. They were told to save for retirement, don’t depend on Social Security – it may not be there, contribute to a company’s 401K or put money away because the economy will grow. Women from these generations had greater challenges because of lower wages, lack of available retirement plans, and the breakdown of the family.

Future retirees will come from Gen X, with today’s population of about 65 million. Transamerica Center for Retirement Studies (TCRS) published a revealing study. Large pluralities of future retirees are pessimistic about wage growth and financial security. They found 41% of those surveyed felt that future generations of retirees will be worse off than current retirees. A report by Blackrock Investments shows that in 2023, only 53% of workers believe they are on track to retire with the lifestyle they want. This will cause an increasing trend to plan for retiring later. Growing focus will be necessary with reliance on Social Security benefits, Medicare, health and wellness, and retirement planning. Real worries and lack of confidence will have to be dealt with from a lack of retirement income caused by market volatility and high inflation.

America’s current and future retirees are frightened. The Consumer Price Index shows that prices have risen 19.4% since Joe Biden took office. That means 33 months of consumers watching their retirement funds disappear. Biden describes “Bidenomics” propaganda as growing the economy from the middle out and the bottom up, not the top down. It’s stated as an economic vision where government educates and empowers American workers, which promotes competition to lower costs and help small businesses.

The economy has been defined by sky-high inflation and a robust labor market. While price increases may be slowing, costs remain elevated for staples like groceries, home necessities, and gas. The Federal Reserve’s attempt to tame inflation has impacted interest rates to 8%, the highest mortgage rates in 24 years making home ownership unattainable. A recent poll by the Associated Press found that two-thirds of Americans disapprove of how Biden has handled the economy. According to a CNN poll over three-quarters feel the economy is in poor shape. Democrat economist Larry Summers made waves with highly critical remarks about Bidenomics and administration policies. One senior voter calls it a “jumbled mess.”

Current retirees are the forgotten generation because of their age and life challenges, which are not clearly understood. Sadly, inflation has very much eaten away at their savings. Future Gen X retirees will represent the largest group of retirees in the history of the country. These soon-to-be retirees face unprecedented challenges in securing protected income that will last. News commentators, news editors, social media, congressmen and women, have never experienced retirement. They lack empathy, especially with all the critical life decisions that will have to be made. Unfortunately, we have a President who is more interested in selling the Bidenomics fantasy versus achieving reality.