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Only 1 in 5 workers nearing retirement are financially on track: “It will come down to hard choices”

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The rule of thumb for people who are 55 and have another decade of work before reaching the traditional retirement age is to have already socked away about eight times their salary in their retirement accounts. But the median savings of today’s 55-year-olds is just $50,000, far from enough to fund a secure old age, according to a new study.

In fact, only 1 in 5 people who are 55 years old have $447,000 or more saved for retirement, or eight times the average U.S. salary, Prudential Financial’s 2024 Pulse of the American Retiree Survey found. The report jibes with another recent study on Gen X’s retirement readiness, which found half of those surveyed believe it would take a “miracle” for them to be able to retire.

The new findings come as the oldest members of Generation X, or people born between 1965 to 1980, are now entering their pre-retirement years, giving them a short period in which they can shore up their savings before stepping back from work. But many who are already lagging behind those savings milestones may end up unprepared — at least financially — for retirement, given that it would likely be difficult, if not impossible, to build a sizeable nest egg in a just a few years. 

Even so, a Plan B is emerging with the group, with one-quarter of today’s 55-year olds telling Prudential they plan on relying on financial support from family in retirement, and twice as many 65- and 75-year-olds saying the same. About 1 in 5 Gen Xers, so-called “silver squatters,” also expect to need housing support in their old age, Prudential said.

“If you know you are in trouble, you know you need to get money from somewhere,” David Blanchett, head of retirement research at Prudential, told CBS MoneyWatch. “It could be from their parents, if they are still alive, but it could be their kids, too.”

He added, “Maybe parents made a big sacrifice to send their kids to college,” and there may be a sense of financial obligation that will come back around. But at the same time, those expectations could put more economic pressures on younger Americans like Gen Z, born between 1997 to 2012, who may themselves be struggling to buy homes or save for retirement. 

The truth is that workers — and retirement planners — need to be realistic about what’s possible to accomplish in the last decade of one’s career, Blanchett said. For instance, he noted that he often hears from retirement planners that their clients will have to work far beyond 65 to save enough to retire, but that ignores the reality that most people retire years before they had planned, he said. 

“Hard choices”

For instance, an Urban Institute study that tracked workers from their early 50s through at least age 65 found that only 19% retired voluntarily, with the majority having to stop working before they reached retirement age due to layoffs, poor health or other issues that were beyond their control. The typical worker retires three years before they plan to, Blanchett said.

“Planners say, ‘Oh they are behind, they’ll just work til their 70 or 72,’ and it’s like whoa, whoa, people retire before they plan to,” Blanchett said. “If you are already behind, you’ll just be more behind.”

In other words, people who are 55 years old today might only have seven more years of work, not a decade, which puts them under more pressure to figure out how to fund retirement, he noted.

“What can you do over the next seven years to get you into better shape? It will come down to hard choices,” Blanchett said. 

While saving more can help, most workers don’t have a lot of extra money floating around to put into their retirement accounts, he noted. But if a worker ends their career before they had planned, they could get a part-time job or switch to another type of job later in life, with the goal of earning enough to at least pay for their household expenses, which would help them avoid drawing down their retirement savings. 

Secondly, older workers should plan on postponing claiming Social Security for as long as possible, given that the monthly benefit increases each year it is delayed, until one reaches 70 years old. That means the monthly benefit is about more than 75% higher at the age of 70, than if one claims at 62, the earliest age to start receiving the benefit. 

“The key is to save until you are 63 or 64, but try not to claim or access your benefits” for as long as possible, Blanchett said.



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At least 1 dead, records shattered as heat wave continues throughout U.S.

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A long-running heat wave that has already shattered previous records across the U.S. persisted on Sunday, baking parts of the West with dangerous temperatures that caused the death of a motorcyclist in Death Valley and held the East in its hot and humid grip.

An excessive heat warning — the National Weather Service’s highest alert — was in effect for about 36 million people, or about 10% of the population, said NWS meteorologist Bryan Jackson. Dozens of locations in the West and Pacific Northwest tied or broke previous heat records.

Many areas in Northern California surpassed 110 degrees, with the city of Redding topping out at a record 119. Phoenix set a new daily record Sunday for the warmest low temperature: it never got below 92 F.

A high temperature of 128 F was recorded Saturday and Sunday at Death Valley National Park in eastern California, where a visitor died Saturday from heat exposure and another person was hospitalized, officials said.

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A visitor reacts as he poses next to a thermometer reading 131 degrees Fahrenheit at the visitor center in Death Valley National Park.

ETIENNE LAURENT/AFP via Getty Images


The two visitors were part of a group of six motorcyclists riding through the Badwater Basin area amid scorching weather, the park said in a statement.

The person who died was not identified. The other motorcyclist was transported to a Las Vegas hospital for “severe heat illness,” the statement said. Due to the high temperatures, emergency medical helicopters were unable to respond, as the aircraft cannot generally fly safely over 120 F, officials said.

The other four members of the party were treated at the scene.

“While this is a very exciting time to experience potential world record-setting temperatures in Death Valley, we encourage visitors to choose their activities carefully, avoiding prolonged periods of time outside of an air-conditioned vehicle or building when temperatures are this high,” said park Superintendent Mike Reynolds.

Officials warned that heat illness and injury are cumulative and can build over the course of a day or days.

“Besides not being able to cool down while riding due to high ambient air temperatures, experiencing Death Valley by motorcycle when it is this hot is further challenged by the necessary heavy safety gear worn to reduce injuries during an accident,” the park statement said.

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A sign warning of excessive heat at Mesquite Flat Sand Dunes in Death Valley National Park.

ETIENNE LAURENT/AFP via Getty Images


The soaring temperatures didn’t faze Chris Kinsel, a Death Valley visitor who said it was “like Christmas day for me” to be there on a record-breaking day. Kinsel said he and his wife typically come to the park during the winter, when it’s still plenty warm — but that’s nothing compared with being at one of the hottest places on Earth in July.

“Death Valley during the summer has always been a bucket list thing for me. For most of my life, I’ve wanted to come out here in summertime,” said Kinsel, who was visiting Death Valley’s Badwater Basin area from Las Vegas.

Kinsel said he planned to go to the park’s visitor center to have his photo taken next to the digital sign displaying the current temperature.

Across the desert in Nevada, Natasha Ivory took four of her eight children to a water park in Mount Charleston, outside Las Vegas, which on Sunday set a record high of 120 F.

“They’re having a ball,” Ivory told Fox5 Vegas said. “I’m going to get wet too. It’s too hot not to.”

Jill Workman Anderson also was at Mount Charleston, taking her dog for a short hike and enjoying the view.

“We can look out and see the desert,” she said. “It was also 30 degrees cooler than northwest Las Vegas, where we live.”

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A man walks near the Las Vegas strip during a heatwave in Las Vegas, Nevada on July 7, 2024. According to the US National Weather Service, high temperatures in Las Vegas on Sunday could reach up to 117 degrees Farenheit.

ROBYN BECK/AFP via Getty Images


Triple-digit temperatures were common across Oregon, where several records were toppled — including in Salem, where on Sunday it hit 103 F, topping the 99 F mark set in 1960. On the more humid East Coast, temperatures above 100 degrees were widespread, though no excessive heat advisories were in effect for Sunday.

“Drink plenty of fluids, stay in an air-conditioned room, stay out of the sun, and check up on relatives and neighbors,” read a weather service advisory for the Baltimore area. “Young children and pets should never be left unattended in vehicles under any circumstances.”

Rare heat advisories were extended even into higher elevations including around Lake Tahoe, on the border of California and Nevada, with the weather service in Reno, Nevada, warning of “major heat risk impacts, even in the mountains.”

“How hot are we talking? Well, high temperatures across (western Nevada and northeastern California) won’t get below 100 degrees until next weekend,” the service posted online. “And unfortunately, there won’t be much relief overnight either.”

More extreme highs are in the near forecast, including possibly 130 F around midweek at Furnace Creek, California, in Death Valley. The hottest temperature ever officially recorded on Earth was 134 F in July 1913 in Death Valley, though some experts dispute that measurement and say the real record was 130 F, recorded there in July 2021.

Tracy Housley, a native of Manchester, England, said she decided to drive from her hotel in Las Vegas to Death Valley after hearing on the radio that temperatures could approach record levels.

“We just thought, let’s be there for that,” Housley said Sunday. “Let’s go for the experience.”

In Arizona’s Maricopa County, which encompasses Phoenix, there have been at least 13 confirmed heat-related deaths this year, along with more than 160 other deaths suspected of being related to heat that are still under investigation, according to a recent report.

That does not include the death of a 10-year-old boy last week in Phoenix who suffered a “heat-related medical event” while hiking with family at South Mountain Park and Preserve, according to police.

In California, crews worked in sweltering conditions to battle a series of wildfires across the state.

In Santa Barbara County, northwest of Los Angeles, the growing Lake Fire had scorched more than 25 square miles of dry grass, brush and timber after breaking out Friday. There was no containment by Sunday. The blaze was burning through mostly uninhabited wildland, but some rural homes were under evacuation orders.



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Companies harness AI power for mental health support | 60 Minutes

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Companies harness AI power for mental health support | 60 Minutes – CBS News


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Artificial intelligence is being used as a way to help those dealing with depression, anxiety and eating disorders, but some therapists worry some chatbots could offer harmful advice.

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Havana Syndrome evidence suggests who may be responsible for mysterious brain injuries

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Havana Syndrome evidence suggests who may be responsible for mysterious brain injuries – CBS News


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Efforts continue to investigate brain injuries suffered by U.S. officials. This is the fourth 60 Minutes Havana Syndrome report and, for the first time, there’s evidence of who might be responsible.

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