Why Parsons Employees May Never Retire

Healthcare Provider Update: For Parsons, the primary healthcare provider is the UnitedHealthcare plan, particularly significant as it is one of the largest insurers in the country, alongside others that may service Parsons employees depending on their locations. As we move into 2026, healthcare costs are expected to escalate dramatically due to a combination of factors affecting the Affordable Care Act (ACA) marketplace. Reports anticipate substantial premium increases, with some states seeing hikes of over 60%. This surge is primarily driven by deteriorating medical cost trends and the looming expiration of enhanced federal premium subsidies, which could result in out-of-pocket premium payments rising by an average of over 75% for approximately 92% of marketplace enrollees - a situation that poses significant financial challenges for individuals relying on ACA coverage. Thus, Parsons employees are advised to consider these developments carefully as they plan their healthcare for the upcoming year. Click here to learn more

The findings from a recent survey conducted by the AARP and the NORC Center for Public Affairs Research  reveal a concerning outlook that will impact Parsons employees' readiness for retirement. Approximately 25% of U.S. adults aged 50 and older, who are still in the workforce, doubt they will ever be able to retire. This belief is fueled by growing anxieties, with 70% worried their earnings are not keeping pace with escalating costs.

This study, which involved more than 8,000 participants, underscores the deep financial concerns plaguing many individuals in this demographic. Notably, about one in four respondents reported having no retirement savings whatsoever, exposing the formidable challenges they face in securing financial stability for their later years.

Key hindrances to saving adequately for retirement include high housing costs—both rent and mortgage payments—and daily living expenses, which intensify financial pressures.  The data reveals  that 12% of older adults are burdened with credit card debts exceeding $20,000, and a third have balances over $10,000. Moreover, 37% voiced concerns about their ability to afford basic necessities such as housing and food.

These financial strains have far-reaching implications, affecting not only individual retirement strategies but also the broader economic landscape. 'The lack of accessible retirement saving options combined with inflation is making it increasingly difficult for individuals to decide when they can retire,'  noted Indira Venkateswaran, AARP's senior vice president of research .

Continued polling by AARP  shows a steady number of adults aged 50 and older who foresee an inability to retire—23% in January 2022, slightly rising to 24% by July. David John, Senior Strategic Policy Advisor at the AARP Public Policy Institute, points out that a significant number of older adults remain in the workforce primarily due to inadequate retirement funds.

Political leaders have also taken note of these issues, given the high voter turnout rates among older Americans. President Joe Biden has focused on policies like allowing Medicare to negotiate directly with drug companies to reduce prescription costs and capping insulin prices at $35 for Medicare beneficiaries. Conversely, former President Donald Trump hinted at potential entitlement program reforms in a CNBC interview in March, although his campaign later assured that, if reelected, he would uphold Social Security and Medicare.

The sustainability of Social Security and Medicare remains a pressing concern.  According to the latest trustees' report, Medicare may not fully cover nursing home stays and inpatient hospital visits by 2031.  Social Security faces similar challenges, with its fund expected to deplete before it can continue full payments by 2033.

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Public sentiment strongly opposes any cuts to Medicare or Social Security, as reflected in a March 2023 AP-NORC poll.  The majority of respondents favor imposing higher taxes on the wealthiest Americans to maintain Medicare's solvency.

The necessity for robust policy measures to ensure the financial well-being of America's elderly population is more urgent than ever, as demographic and economic pressures converge. Recent trends indicate many older Americans, including Parsons employees, are turning to part-time entrepreneurship—a viable means to supplement income and remain active. A 2021 study by the Ewing Marion Kauffman Foundation found individuals over 55 increasingly starting their own businesses, driven by desires for flexible work schedules, personal fulfillment, and financial security.

For many Parsons employees approaching retirement, the journey increasingly resembles navigating a sailboat through stormy seas. Facing financial turbulence, these near-retirees must frequently adjust their course, akin to sailors adapting to changing winds and currents. For about 25% of these individuals, the lack of sufficient retirement funds means they must keep sailing, working into old age and exploring alternative income sources such as side jobs. This ongoing journey is not only a necessity but also an opportunity for personal growth and redefining life goals.