More people are saving for retirement than ever before – and they’re saving more. But health care costs in retirement are soaring, and and poverty rates among older Americans are rising for the first time in decades.
The competing trends sum up the state of retirement as we enter 2026. The United States is aging rapidly – by 2030, one in five Americans will be 65 or older, and that shift is reshaping large swaths of the U.S. economy, from labor force participation rates to retirement savings, Social Security and Medicare outlays, health care spending, housing and financial services. Retirement has become one of the largest — and fastest-growing — forces in the economy.
But aging in America is unfolding unevenly. Wealth inequality, gaps in retirement plan coverage, and rising health and long-term care costs mean that some households are enjoying remarkable financial security in retirement, while others are struggling to afford it at all. And poverty rates among older Americans are rising — making them the only age group to see an increase in recent years.
In my latest Retiring column for the New York Times (gift link), I spotlight seven numbers that help explain some of the key trends shaping retirement.