Invest Now to Head off ‘Looming Retirement Crisis,’ Says Heitkamp

The seeds have been sown for a retirement income crisis, says a former U.S. Senator, and the time to act is now.

“We face a looming retirement crisis that will impact millions of elderly and soon-to-be elderly Americans, as well as our children and grandchildren who will have to bail out those generations,” warned former Sen. Heidi Heitkamp (D-ND) in a recent CNBC commentary.

Calling the sizable number of American families who have no retirement savings “a time bomb waiting to go off,” Heitkamp warned that families “across this country” are “in jeopardy for generations,” something that she said threatens the U.S. economy. “The challenges are clear,” she said, citing further statistics that more than 33% of private-sector workers lack access to an employer-provided retirement plan, and projections that more than 40% of those in the Baby Boom and Gen X will have insufficient funds for retirement.

And demographic trends showing that the population and workforce are aging, as well as income trends, exacerbate the problem, Heitkamp says. “How we will afford to care for older Americans when most American families have no or very little retirement savings?” she asked.

To meet these challenges, Heitkamp says, individuals and families “must make saving for retirement a priority,” even if it means only putting a small amount away each month. And the earlier that starts, the better.

Heitkamp also called for congressional action. “Congress needs to invest in hard working families by helping make sure they can save for retirement now, so they will be set up for success in later years,” she said, but in a way that does not make the retirement system even more complicated. But government action and incentives will not matter if individuals and families don’t make saving a priority.

“The time to act is now, before it’s too late,” said Heitkamp.