While our Aging of the Population theme tends to center on the demographic tailwinds with Boomers, data is starting to show the “near retiree” group – aged 55-64 – is under saved for their retirement. We at Tematica see this propelling our Middle-Class Squeeze investing theme, but make no mistake those under saved implications will ripple across our Aging of the Population theme, shaping a number of spending decisions along the way.
A recent report from Democrats on the Joint Economic Committee of Congress found that workers ages 65 and up were hit harder by unemployment than prime age workers ages 25 to 54. In April, older workers’ unemployment rate exceeded prime age workers by three percentage points, the biggest gap ever recorded, the research found.
And while that difference narrowed in the following months, the concern is that could be because older workers simply gave up looking for work.
Near retirees — those ages 55 to 64 — are not in a much better position. One-third of those workers have neither a pension nor a 401(k) plan or other employer-provided retirement savings plan.
Workers in that age group who do have access to those retirement accounts have a median of $88,000 saved, according to the report.