With millions of folks approaching retirement and millions of seniors in retirement, there's a storm brewing – a perfect storm fueled by inflation, rising costs of living, and hidden taxes. This confluence of factors is wreaking havoc on the retirement account values and the social security income of families across the nation, obliterating retirement dreams and plunging many into a state of economic peril.

The last time this devaluation of family wealth happened was right after Obama was elected with millions of Americans losing the equity value in their homes. After Obama was elected, many Americans had to work another five to seven years to fund retirement savings from all of the losses sustained.

Using basic math, a $100,000 retirement account would be devalued just by inflation by approximately 15.5% over the last three years Now, government regulation, policies , inflation, taxes, and interest rates have reduced the value of the average retirement buying power by somewhere around 36% according to CNN.

American Dream, Shattered

Recently, only 22% of working Americans aged 60-67 reported having sufficient savings for retirement, a decrease from 26% recorded the year before.

Recent reports from CBS paint a grim picture: approximately 50% of working families in the USA face serious life insecurity, struggling to afford basic necessities such as meals, rent, and healthcare. The American Dream, once a beacon of hope for millions, is being shattered by soaring rent and food prices, exacerbating the financial woes of working-class Americans.

Rent and food, two fundamental pillars of household budgets, are now at the forefront of economic distress. According to sources like The New York Times, Harvard, and the USDA, rent and food inflation have reached levels unseen in 30 years, leaving many families reeling from the financial strain. In major cities across the country, working families, union members, and minorities are bearing the brunt of this crisis. Even school lunch costs are up over 300%.

Right now, CNN says that this is the worst housing market in 40 years. The vicious cycle of rising expenses, coupled with hidden taxes and fees, is pushing many working Americans to the brink of financial ruin. Adding insult to injury, politicians have implemented a slew of hidden taxes, further burdening struggling families. Skyrocketing lending rates on credit cards, cars, homes, and student loans are pushing many Americans into crippling debt, with little recourse for escape.

As families struggle to make ends meet, the toll of inflation and hidden taxes extends beyond individual households, casting a shadow over the nation's economic prosperity. The Federal Reserve's attempts to stimulate the economy have fallen short, leaving state and local politicians vulnerable to public backlash. In the meantime, 93% of the stock market is owned by the richest 10% of people.

In the face of this economic turmoil, it's clear that urgent action is needed to alleviate the burden on working families and safeguard the American Dream. From comprehensive tax reform to targeted relief measures, policymakers must prioritize the needs of struggling Americans and productivity, lest the fabric of our society unravel further.

With things like baby food and beef costs up through the roof, Americans are wondering what is wrong with state and national governments. According to the Seniors League, the buying power of benefits for those who retired before the year 2000 has eroded by 40%—the deepest loss in buying power since the study began. Even the US Postal Service reported negative returns on their pensions with inflation blasting the postal retirement system.

Shockingly, most government employees and those who receive government subsidies have not felt the real carnage of inflationary health care costs. The average government employee speeds 4.8% of their salaries on healthcare. The typical non-elderly family in the U.S. spends about 11% of their income on health care. This is a 6.2% difference in costs from the government sector to the private sector which is massive. However, according to the Federal Times, for the roughly 8 million federal employees, retirees and dependents who get health insurance from the federal government, premiums beginning Jan. 1, 2024, will increase on average 7.7% which saw the biggest spikes in a decade.

Economic Catastrophe

In conclusion, the USA is in the grip of an economic catastrophe fueled by inflation, rising costs, unaffordable housing, and hidden taxes. Most media networks forget to combine the costs of: inflation, rent, CPI indexes, food, and interest rates to see the real economic devastation and harm inflicted upon retirees and workers.

The worst part about this economy is that the average retirement 401(k) plan was down 23% in 2022 according to Fidelity. Sadly, the following year 2023, a 23% gain was not enough to get your money back. Thus, investors were still down 7% percent.

Thus, there has been over two years of continued losses in the stock market with supplemental crushing inflation experienced by the average investor and retiree. As such, working families, once the backbone of the nation, are now teetering on the edge of retirement impossibility. Without swift and decisive intervention, the promise of a secure retirement and a better future for all Americans may remain nothing more than a distant dream.

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Commissioner George Mentz JD MBA CILS CWM® is the first in the USA to rank as a Top 50 Influencer & Thought Leader in: Management, PM, HR, FinTech, Wealth Management, and B2B according to Onalytica.com and Thinkers360.com. George Mentz JD MBA CILS is a CWM Chartered Wealth Manager ®, global speaker - educator, tax-economist, international lawyer and CEO of the GAFM Global Academy of Finance & Management ®. The GAFM is a EU accredited graduate body that trains and certifies professionals in 150+ nations under standards of the: US Dept of Education, ACBSP, ISO 21001, ISO 991, ISO 29993, QAHE, ECLBS, and ISO 29990 standards. Mentz is also an award winning author and award winning graduate law professor of wealth management of one of the top 30 ranked law schools in the USA.