The landscape of retirement for the baby boomer generation is increasingly precarious as millions approach their golden years with insufficient savings to sustain their livelihoods without working. Diane Senffner, a 63-year-old member of the “peak boomer” cohort – those born between 1959 and 1964 – embodies the critical challenge faced by many soon-to-be retirees.
Senffner’s personal journey through the pandemic resulted in the closure of her small business, depletion of her 401(k) and savings, and an ongoing struggle to find full-time employment. Business Insider confirmed through documentation review that Senffner, like many of her peers, has no savings left as her planned retirement nears.
The “peak boomer” crisis is marked by a report from the Alliance for Lifetime Income’s Retirement Income Institute that highlights over 30 million boomers will start turning 65 this year. This final wave of baby boomers faces a daunting reality: 52.5% have $250,000 or less in assets, indicating a potential overreliance on Social Security benefits.
Social Security remains a critical but insufficient pillar for retirement sustenance. Senffner, for example, expects to receive around $1,800 monthly from Social Security, which will not cover essential expenses such as rent, groceries, and prescriptions. “It’s simple math,” she explains, “you’re talking about retiring, needing about $4,000 a month, at least, just to cover expenses. Just Social Security isn’t going to cover that.”
The broader picture for Americans over 65 isn’t promising either. Census Bureau data reveals over half have an annual income below $30,000, intensifying concerns that Social Security alone is inadequate. Moreover, with forecasts suggesting the Social Security fund could be exhausted by the late 2030s without legislative action, anxiety among older Americans like Senffner is mounting.
Age discrimination further compounds the problem, making re-entry into the workforce challenging for seasoned professionals. While the AARP indicates that 60% of hiring managers prefer hiring older candidates for entry-level jobs due to reliability, low wages and physical demands often render such positions untenable for those nearing retirement. The AARP’s January survey found that one in five older adults has no retirement savings, and more than half fear they lack sufficient funds for retirement.
“I’m between contract jobs, and I have no savings,” Senffner told BI. “I was somebody who did really well, and it’s very disheartening because I have no idea what’s going to happen with retirement. My husband and I are both a year and a half from retirement age, but I think I’ll probably need to work until I die because there’s no money.”
Relevant articles:
– A 63-year-old peak boomer is ‘incredibly scared’ Social Security won’t be enough to cover her expenses in retirement: ‘I’ll probably need to work until I die’, Yahoo News UK