The White House has been touting 'Bidenomics' as a positive in recent months, but Americans aren't buying it. The combination of inflation and high interest rates is hitting people in the pocketbook, with 72% in a recent CNN poll saying the economy is in bad shape. That pessimism is also spreading to retirement, with some critics calling Bidenomics a disaster for current and future retirees.
A recent survey from Blackrock Investments finds only about half of current workers believe they are on track to retire at the level of income they want, and nearly half believe future retirees will have it tougher than current retirees. Mitch Kramer, CEO of Fluent Financial in Dallas, says there is reason for pessimism among future retirees. "Right now, Baby Boomers are fully retired and taking money out for Social Security and Medicare, but there's not enough people working to support the benefits they've been promised," he tells KTRH. "So we see some potential tough times ahead around 2030."
"The only silver lining is we've seen a lot of people who have retired be asked back by their former employers, because they need their expertise and work ethic," Kramer continues. "That's going to help them in terms of being able to work longer if they want to."
At the same time Boomers are gobbling up Social Security and Medicare, Generation X and older Millennials are behind on saving for their retirement, as they face higher prices and higher debt. "For younger people, the biggest asset they have in their portfolio is time," says Kramer. "But you have to take action today, you can't procrastinate."
For those looking to boost their retirement while navigating the difficult economy, Kramer recommends speaking with a financial advisor, diversifying your holdings by expanding into the bond market, and above all (and perhaps most difficult,) getting out of debt. "We tell our clients try to be debt free, including your mortgage if possible, by the time 2030 gets here," he says. "Because if we do have a significant pullback in the economy, there will be some great buying opportunities for those who don't have debt and have cash available."