Nearly Half of Americans Will Face Downward Mobility in Retirement
October 15, 2018
A new study conducted by the Schwartz Center for Economic Policy Analysis has found that two in five middle-class workers and their spouses will be downwardly mobile in retirement, falling to near or below the poverty level.
The study looked at current middle-class workers who are between the ages of 50 and 60. It concluded that if these workers retire at 62, 8.5 million will make less than two times the Federal Poverty Level. Of these 8.5 million, 2.6 million will have incomes below the poverty level.
The study estimates that the typical single worker who currently makes between $25,000 and $64,000 will have a yearly income of $18,000 if they retire at 62.
The study notes 74 percent of Americans now expect to work past the traditional retirement age.