America’s retirement crisis

America’s retirement crisis could cost federal and state governments an estimated $1.3 trillion by 2040. 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. The anticipated costs—$964 billion for the federal government and $334 billion for states between 2021 and 2040—are “relatively shocking,” said John Scott, director of Pew’s retirement savings project.