(The Center Square)—The U.S. Congressional Budget Office released new data showing that in the last calendar year, the federal deficit has risen over $2 trillion.
The CBO released its monthly report on federal spending and revenue to show the increase, which is more than double the deficit levels just a few years ago. Before the COVID-19 pandemic, the fiscal year deficit did not top $1 trillion.
Now, Americans are in danger of $2 trillion becoming the new normal.
Recently, the federal figures are even worse. According to the CBO, the federal deficit has already hit $710 billion in the fist three months of the fiscal year.
Now, the federal government is on track to have interest payments on the national debt as its single largest expenditure.
So far, lawmakers have shown little sign of planning significant budget cuts.
“Zombie-Congress is headed in a bad direction,” U.S. Rep. Thomas Massie, R-Ky., wrote on X Tuesday. “Plan is to pass a tax cut bill (reconciliation) AND a spending increase (omnibus) … This one-two deficit punch will make bond buyers demand more interest to finance existing debt…”
“We will burn billions more in interest!!” he added.
Many economic and fiscal policy experts continue to raise the alarm about the rising deficit as well as the national debt, which is over $36 trillion and is expected to surpass $37 trillion later this year.
“The 5 year US Treasury yield has just hit 5 percent even as the real yield for the same horizon is above 2.6 percent,” Harvard Professor and former Secretary of the Treasury for President Bill Clinton and Director of the National Economic Council for President Barack Obama, wrote on X. “This confirms concerns about looming budget deficits and a rising neutral rate.”
Maya MacGuineas, president of the Committee for a Responsible Federal Budget, pointed out the hypocrisy of Congress celebrating cutting spending last year only to raise it again the following year.
“There is absolutely no just justification for running a $2 trillion deficit in a year when the economy was strong and we were still fighting inflation,” MacGuineas said in a statement. “And what an expensive about face to have gone from 2023 – a year in which Congress passed legislation that reduced the debt by $1.3 trillion over ten years – to 2024, where they increased it by $1 trillion over the decade.”
Federal debt spending helps fuel inflation since debt spending is partially offset by printing more money, thus increasing the money supply and increasing inflation.
“Under Joe Biden, federal powers ballooned, turning states into mere subjects with $2 trillion deficits as a result,” Heritage Fellow Stephen Moore wrote on X.
The Biggest Threat to Your Retirement Is Actually a Very Good Thing
When you look at the headlines today, you’ll see experts in the retirement industry warning about big threats to your financial security:
- De-dollarization and the rise of BRICS
- Soaring national debt
- Unstable interest rates
- Weakened U.S. dollar
All of these are real concerns. But they aren’t the biggest threat to your retirement savings. The true risk isn’t political, monetary, or global.
It’s longevity.
Why Longevity Is the Silent Threat
For most of human history, the problem was the opposite — life expectancy was short, and few people even reached retirement. Today, thanks to medical advancements, healthier lifestyles, and better living conditions, people are living longer than ever before.
And while that’s a wonderful thing, it comes with a financial catch: Your retirement account has to last far longer than you might expect.
- A 65-year-old couple today has a 50% chance that one of them will live to 90.
- Some projections suggest that many of us will live well into our 90s, even 100+.
- This means your nest egg may need to stretch not for 15 years, but 25, 30, or even 40 years.
That’s where the real danger lies: running out of money before you run out of life.
The Retirement Equation Has Changed
While market volatility, debt crises, or central bank policies may feel like the scariest threats, they’re temporary storms. Longevity, however, is a structural shift. Every extra year of life is another year of expenses, another year of inflation erosion, and another year of financial pressure.
If your retirement plan doesn’t account for longevity, you could face tough choices later in life — downsizing, working when you’d rather not, or becoming financially dependent on others.
How to Take Control
The good news? Longevity is a blessing — as long as you’re prepared for it. With the right planning, your retirement savings can work for you instead of against you. The key is learning how to protect your wealth, outpace inflation, and ensure your savings grow even as you live longer.
That’s why our friends at Augusta Precious Metals created a free resource to help you get started:
👉 Get Instant Access to the report, “How to Take Full Control of Your Financial Future”
This brief report will show you practical strategies to safeguard your retirement from the biggest threat of all — the one that comes from the gift of living longer.
Don’t let longevity catch you unprepared. Take the steps today to secure tomorrow.