Savings & Retirement

US Retirement Savings Shortfall Will Cost $1.3 Trillion

A new analysis says states and the federal government will be on the hook for a massive bill as more Americans age out of the workforce.

Photographer: Sean Gallup/Getty Images
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America’s retirement crisis could cost federal and state governments an estimated $1.3 trillion by 2040, according to a new analysis.

Inadequate retirement savings will result in higher public assistance costs, decreased tax revenue, lower household spending and a decline in standards of living, according to a report done for the Pew Charitable Trusts.