Yahoo Finance ‘Financially impossible’: Why a midlife crisis is now out of reach for many Americans
A midlife crisis may not be an aspiration for many, but it was always an option. According to a columnist for The Cut, New York Magazine’s website, 40-somethings now no longer have that privilege.
Don't miss
Cost-of-living in America is still out of control — use these 3 'real assets' to protect your wealth today, no matter what the US Fed does or says
Car insurance rates have spiked in the US to a stunning $2,150/year — but you can be smarter than that. Here's how you can save yourself as much as $820 annually in minutes (it's 100% free)
These 5 magic money moves will boost you up America's net worth ladder in 2024 — and you can complete each step within minutes. Here's how
Writer and producer Amil Niazi wrote a recent piece about how she and her fellow millennials can’t afford to have a midlife crisis.
“In the movies and TV I grew up watching, a midlife crisis was born out of a complacent sense of security,” she wrote. “Today, the real crisis isn’t about mortality; it’s that our lives and stations are unchanged from when we were 30 — or, hell, even 20. It’s about a distinct lack of comfort, of resources.”
It’s not just those in their 40s who can’t afford to take a beat and do something impulsive. A recent AARP survey says that 1 in 5 Americans ages 50 and older have no retirement savings and more than one-third (37%) are worried about covering basic expenses, meaning they can’t rest easy either.
Don’t blame yourself for not saving up so that you can buy yourself a sports car during your next midlife or retirement crisis; blame long-term economic factors.
Unstable job market
Niazi admits in her column that she knows she hasn’t chosen the most stable career as a writer and journalist.
With her economic instability, her version of a midlife crisis includes looking into getting her real estate license, researching how to become a plumber’s apprentice, and Googling which graduate degrees will bring her a “steady job that pays good and will let you retire one day with dignity.”
“I have 20 years of experience in my field at this point,” Niazi wrote. “And the majority of the time when I apply for a job, I never hear back.”
Read more: Thanks to Jeff Bezos, you can now use $100 to cash in on prime real estate — without the headache of being a landlord. Here's how
The U.S. unemployment rate is around 4%, but this doesn't mean it's easy for everyone to land a job. As CNBC reports, “the hiring rate for all workers is at 3.6% of those counted in the labor force, just off the low of the post-Covid era … Prior to the pandemic, the hiring rate was last below the current level in August 2014. It’s getting worse for younger workers.”
Older Americans are also seeing a different future than what they might have imagined. After the 2008 Great Recession’s hit to both the job market and the stock market, many middle-aged people watched their savings disappear overnight. Not only could those people not afford a midlife crisis, they realized they may not be able to afford retirement either.
Now, those middle aged people are inching closer to retirement — or already living it. Fidelity dubbed their third act the “new retirement,” one that includes working. The financial institution discovered in a recent survey that 57% of American adults plan to keep working past age 65.
Though employers have started to embrace older workers, it still means that older people don’t get to have their well-deserved, restful third act.
Housing bubble
Niazi writes about her friend who can’t leave her bad marriage because she can’t afford a new place to rent — especially not one in their kids’ school district.
“Any single change in our jobs, homes, or health could upend our entire lives in ways that are just financially impossible,” she said.
And that’s just rent. As housing prices continue to skyrocket, the National Association of Realtors says that the median age for a first-time homebuyer is now 35-years-old — approximately the same age as someone on the cusp of a midlife crisis.
If you are one of the lucky people to buy a home, you probably don’t have a lot of money saved to buy a motorcycle or quit your job to travel. Even if you continue to rent, the median national rent for a two-bedroom apartment sits at $1,865, according to Zumper. After paying for your other necessities, many young people decry that they have no money for any kind of fun.
Niazi expresses a feeling that most midlifers can probably relate to: “I don’t need new highlights or a sports car; I just want the ability to plan for a secure future.”
What to read next
Car insurance premiums in America are through the roof — and only getting worse. But 5 minutes could have you paying as little as $29/month
‘Baby boomers bust': Robert Kiyosaki warns that older Americans will get crushed in the 'biggest bubble in history' — 3 shockproof assets for instant insurance now
‘You’ll end up with $1.5 million in the bank’: Kevin O’Leary says you should do this 1 thing with your money in order to 'succeed into retirement’
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
