What is “PEAK 65”

In just a few short years, the United States will experience the greatest surge of retirees in its history. As of this year, more than 12,000 people will turn 65 every day, significantly impacting our nation’s retirement system. This monumental shift has far-reaching effects on our economy and society as a whole.

Traditionally, retirement security was built on three pillars: employer pensions, personal savings, and Social Security. However, these foundations have eroded over time, leaving many Americans at risk of financial instability in retirement. Private sector pensions have dwindled, public pension plans face underfunding, and Social Security alone cannot provide adequate support.

Consider the Following:

• In 1980, 60% of private sector workers had pensions, compared to just 4% in 2020.¹
• Public pension plans are underfunded by trillions of dollars.²
• Social Security was never intended to replace all retirement income.³
• Premature Social Security claims cost Americans trillions in potential income.⁴

The flaws in our current retirement systems are evident, and the Peak 65 generation highlights these issues. But the problem extends beyond them. As defined benefit plans disappear and life expectancy rises, future generations face similar challenges.

Sources:

1. https://money.cnn.com/retirement/guide/pensions_basics.moneymag/index7.htm?iid=EL
2. https://www.urban.org/policy-centers/cross-center-initiatives/state-and-local-finance-initiative/projects/state-and-local-backgrounders/state-and-local-government-pensions
3. https://www.ssa.gov/benefits/retirement/learn.html
4. https://www.ssa.gov/news/press/factsheets/basicfact-alt.pdf