1. Senffner’s small business focused on learning and development provided sufficient income before the pandemic, but she had to shut it down due to the economic impact, leading to financial struggles.
2. She had to use her 401(k) and savings to cover expenses since her husband’s income was not enough, leaving her with no savings and uncertain retirement prospects.
3. Senffner is part of the “peak boomer” cohort entering retirement age with limited assets, and she anticipates needing to continue working to supplement Social Security benefits that may not cover her expenses.
Diane Senffner, who was once successful running a small business focused on learning and development, was forced to shut down her business due to the pandemic in 2019. She struggled to find a new source of income for two years, depleting her savings and 401(k) in the process. Now, with no savings left and retirement looming in less than two years, Senffner fears she won’t be able to afford to retire and may need to work until she dies.
Senffner is part of the cohort known as “peak boomers,” born between 1959 and 1964, who are approaching retirement age. A report from the Alliance for Lifetime Income’s Retirement Income Institute found that over 30 million peak boomers have $250,000 or less in assets. This could force them to rely on Social Security benefits, which may not be sufficient to cover living expenses in retirement.
Senffner anticipates having to continue working to supplement her Social Security benefits, as the monthly amount would not cover her basic expenses. Many older Americans are facing a similar situation, with over half of those over 65 having an annual income of $30,000 or less. With the Social Security fund projected to run dry by the late 2030s, Senffner and others are worried about how they will afford retirement.
Despite years of experience, Senffner has struggled to find full-time work and has seen many of her peers face similar challenges. Age discrimination often prevents older adults from landing higher-level jobs, leaving them with limited options. A recent AARP survey found that one in five older adults have no retirement savings, and over half don’t believe they will have enough money to retire comfortably. Senffner emphasizes the need for support for older individuals in retirement, as many are facing uncertainty about their financial future.