The Middle Class Squeeze and Aging of the Population Themes Converge Under the Golden Arches

The Middle Class Squeeze and Aging of the Population Themes Converge Under the Golden Arches

According to a report by the Economic Policy Institute (EPI):

  • The average household aged 56-61 has amassed a $163,577 nest egg.
  • Over the course of a 20-year retirement, $163,577 amounts to just $8,178 a year, or $681 a month, of income.
  • The median savings for that age group is just $17,000, which means a large number of workers have far less than the average.
  • An estimated 41% of households aged 55-64 have no retirement savings at all.
  • An estimated 21% of married Social Security recipients and 43% of single recipients 65 and over-rely on their monthly benefit checks to provide at least 90% of their income.

Aside from the current state of Social Security, what makes this problem even direr is the fact the aging Baby Boomers of today are living longer than the generations that came before them. This means they will need to stretch their savings even further, while potentially cutting spending even more than expected — a blow to the consumer-led domestic economy.

When placed in front of this backdrop, it makes this recent CNN report about fast-food chain McDonald’s working with AARP to recruit older employees to fill its ranks amid historically low unemployment rates entire unsurprising:

The fast food chain [McDonald’s] said on Wednesday that it is partnering with AARP, a nonprofit interest group for aging Americans, to help attract workers who are aged fifty or above. That demographic makes up just 11% of the workforce at corporate-owned stores, according to the company.McDonald’s (MCD) hopes that the new recruitment tactic will attract workers for breakfast and lunch shifts, in particular. Now, McDonald’s tends to attract younger workers who either can’t work mornings because of school, or prefer not to start early in the day. Hiring older workers is also a way to attract talent as US unemployment, now at 3.8%, hovers near all-time lows.McDonald’s has posted positions to its AARP site. The process is being piloted in Florida, Illinois, Indiana, Missouri and North Carolina, with a national rollout planned for this summer. McDonald’s would like to fill 250,000 jobs.

Source: McDonald’s is partnering with AARP to hire older employees – CNN



About the Author

Chris Broussard
I'm the Co-Founder and President of Tematica Research and editor of Thematic Signals, which aims to uncover confirming data points and items to watch for our list of investing themes. Whether its a news item, video clip, or company commentary, we've included this full list of items literally "ripped from the headlines." I have been involved in financial services marketing and publishing for over 20 years – having held senior level positions with financial publishers, financial services corporations and providing marketing support and consulting services to financial institutions and independent financial advisors. My background in digital marketing, financial services and consumer research provides me with a unique perspective on how to uncover the underlying proof points that are driving the themes our Chief Investment Officer Chris Versace utilizes in our various Tematica publications.

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