When it comes to the financial well-being of aging Americans, the prevailing narrative is often one of crisis and panic. Headlines scream about the “retirement savings shortfall” and the “retirement crisis” affecting Baby Boomers and Generation X. While there is some truth to these concerns, this narrative may actually be doing more harm than good.
The traditional story goes like this: Older adults aren’t saving enough, they’re unprepared for retirement, and they lack basic financial literacy to correct course. But what if that story is incomplete—or even misleading? What if focusing solely on “financial literacy” and “personal responsibility” distracts from larger, systemic issues that make retirement security elusive?
There’s no doubt that financial literacy is important. It’s valuable to know how to budget, manage debt, and plan for retirement. But the belief that older Americans are in crisis because they’re “financially illiterate” oversimplifies the issue. It implies that with just a little more education, retirees would suddenly have enough wealth to live comfortably.
However, a closer look reveals that the roots of the retirement gap run far deeper. Stagnant wages, skyrocketing healthcare costs, and volatile financial markets have played a far larger role in shaping retirement outcomes than personal budgeting skills.
“The Retire Ready Initiative is our commitment to ensuring that every American nearing retirement age can access ethical and expert financial guidance,” says Michael A. Scarpati, CEO of RetireUS. “By doing this, we’re actively removing industry barriers so that everyone has the chance to achieve a secure and confident retirement.”
Programs like the Retire Ready Initiative aim to make financial guidance more accessible. But even with accessible advice, retirees face an uphill battle. For decades, financial advisors catered to the ultra-wealthy, creating a two-tiered system where only the affluent could access personalized financial advice. Companies like RetireUS are attempting to democratize this guidance, but critics argue that this approach still puts too much pressure on individuals to “solve” a problem rooted in systemic inequality.
When retirement insecurity is framed as an issue of “personal responsibility,” it allows employers, financial institutions, and policymakers to sidestep their own roles in the crisis. Employer-sponsored pensions have largely disappeared, replaced by 401(k) plans that shift risk from the company to the employee. Wages have stagnated, leaving workers with less money to save, and Social Security—which was never intended to be a retiree’s sole source of income—has not kept pace with rising living expenses.
“The Retire Ready Initiative offers an affordable way for retirees to gain clarity and confidence in their financial planning,” says Scarpati. “This initiative offers participants access to CFP® systems and up to three live planning meetings with an independent financial professional.”
Financial literacy programs and initiatives can certainly help people maximize what they have, but they’re not a silver bullet. It’s difficult to “budget your way” out of systemic issues like wage stagnation, skyrocketing healthcare costs, or predatory lending. A growing number of financial experts argue that we should focus more on policy reform and less on blaming individuals for their retirement shortfalls.
If the common narrative about retirement insecurity is flawed, then what’s a better approach? Advocates for change say we should move beyond “financial literacy” as the ultimate solution and start looking at structural fixes.
This includes strengthening Social Security, encouraging the adoption of portable benefits for gig workers, and pushing for wage growth that keeps pace with inflation. These changes address the root causes of financial instability rather than merely placing the onus on individuals to “do better.”
RetireUS’s Retire Ready Initiative represents an evolution in how financial guidance is delivered. While traditional financial advisors often cater to the wealthy, RetireUS is betting that a more accessible, subscription-style service will appeal to the masses. For $229, participants receive a year of access to Certified Financial Planner (CFP®) systems, along with one-on-one guidance from an independent financial professional.
The approach is a step in the right direction, but it’s not without its challenges. Critics point out that while initiatives like Retire Ready are affordable, they’re still part of a larger framework that focuses on individual solutions rather than collective action.
If Americans want to improve financial security for older adults, the answer lies in addressing root causes, not symptoms. Structural issues like wage stagnation, rising healthcare costs, and the erosion of pensions can’t be “educated away” through financial literacy programs alone.
“The Retire Ready Initiative offers an affordable way for retirees to gain clarity and confidence in their financial planning,” says Scarpati. His words reflect a commitment to making guidance more accessible, but true financial security for retirees requires more than guidance—it requires a fairer economic system.
The path forward requires a shift in focus. Instead of placing the burden solely on individuals to “get financially literate,” we should examine the conditions that make financial security so difficult to achieve. Guidance is helpful, but real change comes from policy reforms and systemic solutions.