Older Americans would like to see the federal government take a more active role in shoring up retirement, according to the recently released 24th Annual Transamerica Retirement Survey from the Transamerica Center for Retirement Studies.
The survey of more than 2,400 retirees found that many Americans are hoping the president and Congress will work together to boost the odds that the nation’s citizens will be financially secure during their golden years.
Here’s a look at what retirees say should be top government priorities, according to the survey.
10. Incentivize ongoing improvement of job skills
Retired respondents who think this should be a priority for the president and Congress to improve retirement security: 22%
Jobs come and go, and whole industries can quickly shrink when the marketplace shifts. Today, many people are worried that artificial intelligence could end their careers.
Perhaps growing fears over the potentially disruptive role of AI is behind the survey respondents’ desire for more federally funded job skills programs.
9. Increase access to broadband
Retired respondents who think this should be a priority for the president and Congress to improve retirement security: 25%
The internet has changed day-to-day life — and if anything, the reach of technology is only growing.
However, it’s hard to stay plugged in if you can’t get a decent connection. One-quarter of survey respondents believe the government should play a bigger role in expanding broadband access to allow retirees to better use telemedicine and financial tools, among other things.
8. Create policies to support family caregivers
Retired respondents who think this should be a priority for the president and Congress to improve retirement security: 37%
Taking care of an aging parent, injured spouse or child with a disability can be a thankless job, and more than 1 in 3 workers would like to see that change.
These respondents say they back initiatives such as paid family and medical leave, tax credits for out-of-pocket caregiving costs and Social Security credits for time spent in a caregiving role.
7. Teach financial literacy in schools
Retired respondents who think this should be a priority for the president and Congress to improve retirement security: 41%
In 2021, a study from financial advice company SmartAsset found only 7% of adults could correctly answer six questions that covered topics related to savings, debt, interest and investment.
If these subjects were taught early in life, it’s reasonable to think good financial habits would become ingrained and reduce the kind of expensive mistakes that shortchange retirement for many.
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6. Increase access to affordable housing
Retired respondents who think this should be a priority for the president and Congress to improve retirement security: 43%
More than 20 million U.S. households spend half of their income or more on housing, according to Habitat for Humanity.
The financial challenge of keeping a roof over your head only grows once you’re living on a fixed income, but we have some ideas for staying ahead in “8 Ways to Lower Your Housing Costs in Retirement.”
5. Make long-term care services more affordable
Retired respondents who think this should be a priority for the president and Congress to improve retirement security: 45%
About 60% of us will require help performing basic living tasks at some point in our lives, according to the U.S. Department of Health and Human Services. This includes things like assistance getting dressed, traveling to appointments and preparing meals. Care may be offered through in-home health aides or at nursing homes and assisted living facilities.
It’s not cheap. Nationally, a home health aide typically costs nearly $6,300 per month, on average, while a private room in a nursing home costs almost $10,000 per month, according to life insurer Genworth.
4. Make retirement plans more accessible
Retired respondents who think this should be a priority for the president and Congress to improve retirement security: 50%
In 2023, 73% of civilian workers had access to retirement benefits, according to the U.S. Department of Labor. That means nearly 1 in 4 workers were out in the cold.
Some people may be saving and investing outside a retirement plan, but that means they’re missing out on significant benefits, as we explain in “7 Mistakes Guaranteed To Ruin Your Retirement“:
“A typical savings account isn’t going to cut it.
Instead, put that money in tax-advantaged retirement accounts such as 401(k) plans or individual retirement accounts (IRAs). These accounts come with tax benefits as well as stiff penalties for early withdrawals. […]
And by all means, if your employer offers a 401(k) match, put your retirement savings there first. You’d be a fool to pass up that free money.”
3. Make health care more affordable
Retired respondents who think this should be a priority for the president and Congress to improve retirement security: 64%
National health spending is expected to grow by an average of 5.1% per year between 2021 and 2030, according to a Centers for Medicare and Medicaid Services report released in 2022. Out-of-pocket costs are expected to represent 9% of total spending by 2030.
Rather than waiting for government action to bring down costs, check out “3 Pharmacy Chains That Offer Free Medications.”
2. Fix funding for Medicare
Retired respondents who think this should be a priority for the president and Congress to improve retirement security: 71%
The trust fund for Medicare Part A — also known as “hospital insurance” — is expected to run out of money in 2036, according to the Medicare Board of Trustees’ 2024 report. If that happens, people on Medicare would face a reduction in their Part A benefits, which is currently projected to be an 11% cut.
Millions of retirees count on Medicare in their old age, and nearly three-quarters of survey respondents say fixing Medicare funding should be a top government priority.
1. Fix funding for Social Security
Retired respondents who think this should be a priority for the president and Congress to improve retirement security: 82%
Social Security and Medicare are two parts of the same problem, according to the Social Security Administration. Both programs “continue to face significant financing issues,” says a government summary of the programs’ 2024 trustees report.
Social Security trust fund reserves for retirement benefits are currently expected to run dry by 2033. That’s not encouraging news for anyone retiring after that date.
However, as Money Talks News founder Stacy Johnson explained in 2021, this doom and gloom is nothing new: “These same types of stories have been going around since I became an investment adviser 40 years ago.”
For more on the challenges facing this program and others, check out “Here’s What Will Happen When Social Security and Medicare Funds Run Dry.”
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