Although in Spain there is an established ordinary retirement age and it is guaranteed that those with lower incomes can access the minimum retirement pension, this does not happen in all countries in the world. In the United States, for example, there is no fixed mandatory retirement age. Although many workers hope to retire around age 65—the age at which they can access social security benefits—this is not always possible, especially for those who earn the minimum wage or face health problems. This is the case of María Ríos, a 75-year-old food preparer who, after 17 years working for a contracting company at Phoenix Sky Harbor International Airport, regrets not being able to retire despite suffering from ovarian cancer..
According to the media Guardian Ríos’ situation reflects the reality of many working people close to retirement age in the United States. Maria explains that, for example, her husband, now retired, only receives a Social Security pension of 400 euros per month (400 dollars), which is not even enough to pay household bills such as the electricity bill, gas or the water. Besides, During the Covid-19 pandemic, Ríos was temporarily suspended from her jobwhich caused him to lose his health insurance as well as his pension contributions. This forced her to delay her cancer treatments. Although he now has this coverage, he continues to pay hundreds of euros out of pocket. “I pay about $200 a month for my health insurance, but it’s still not enough”.
This working woman points out that, in addition to the problem of access to healthcare, her main concern is the lack of a pension plan. “It is very important that people can have a pension, be able to retire with dignity, so that they are not forced to be in a position like mine, 75 years old and still having to work”, he stated. Remember that in the United States, the retirement pension is made up of pension plans in which part is paid by the employee and part by the company, but if the employee does not earn for his or her pension plan, his or her future retirement will be harmed. ç
The retirement pension does not arrive if you earn the minimum wage
Ríos’ situation is not an isolated case. The U.S. Bureau of Labor Statistics projects that the labor force participation rate for people over age 75 will increase from 8.9% in 2020 to 11.7% in 2030. This phenomenon is related to a lack of sufficient retirement savings , where almost half of American families do not have a pension fundwhich leaves them in a precarious economic position in old age and in clear inequality.
This senior worker, like other older workers, has tried to improve her working conditions, as is the case of Cynthia Murray, who is trying to retire at age 67. Along with his colleagues, he participated in a 10-day strike a year ago to demand wage increases, more affordable health insurance and retirement plans. Despite the mobilizations that have taken place in recent years in the United States and there have been slight advances, these are still not enough to guarantee a dignified retirement after so many years of work.
According to The Guardian, Ríos’ situation is not isolated from growing economic inequality. Dr. Lisa Natale, 65, reported that “I have no savings or assets, I don’t even own the house I have rented for 15 years. There is no way I can afford to retire.”. Or also, Kathy Luebbe, a 69-year-old teacher, continues working because her retirement pension does not reach 2,600 euros per month ($2,700), which is insufficient to cover her expenses.
Unable to retire
Adding to this problem is the growing indebtedness of older adults, especially for their own or their children’s student loans. More than 9 million Americans over age 50 still owe these loans, and in many cases, the debts lead to garnishments of their Social Security benefits.
For example, Jane Switchenko, 63, and her husband, 68, find themselves in this situation. They are trapped in educational loans with payments of more than 1,000 euros per month for their children. Both continue to work without being able to afford to retire. . “My husband and I have to work until we die. Loans for parents have added more than $1,000 a month for a decade, and we continue to see a growing balance”Switchenko expressed.
María Ríos and millions of older Americans face daily challenges to remain financially stable at a stage of life when they should be enjoying their retirement. Ríos’ words summarize the feeling of many in his situation, in which he says that “we work hard. We are frugal, but we are entering adulthood and have nothing to look forward to because of these loans. We have five grandchildren and we don’t know what we can buy for Christmas” he ends.