‘Homeless or living in RVs’: Kiyosaki warns ‘millions’ of American boomers are about to go broke. Protect yourself now

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When you retire after decades of work, the expectation is simple: financial security and a comfortable life. But according to Rich Dad Poor Dad author Robert Kiyosaki, that may not be the impending reality for millions of Americans.

In a recent post on X (1), Kiyosaki issued a dire warning: "Millions of baby-boomers will soon find out they have no income once they stop working."

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He argues this isn't a sudden problem — but the result of a shift decades in the making.

"In 1974 ERISA (Employee Retirement Income Security Act) was passed. Up until 1974 most employees had guaranteed retirements income for life," he wrote. "After ERISA millions of employees went on to 401k, RRSPs, IRA which guaranteed nothing."

Kiyosaki is referring to a major shift in how retirement is structured in the U.S.

The Employee Retirement Income Security Act (ERISA) of 1974 set rules to protect workers' pensions, but over time, many employers moved away from traditional defined benefit plans — which promised a fixed income for life — toward defined contribution plans like 401(k)s, while IRAs were introduced for individual savers.

These newer accounts place more responsibility on individuals and are tied to market performance, meaning retirement income is no longer guaranteed and can vary widely depending on how much people save and how their investments perform.

That variability is already showing up in the data. According to Fidelity (2), the average 401(k) balance for baby boomers is $260,300, while the average IRA balance is $286,700 — figures that fall short of what many Americans believe they need to sustain their lifestyle (3).

But retirement accounts aren't Kiyosaki's only concern. He also warned that key government programs may not provide the safety net many Americans expect.

"Adding to the mess, Social Security and Medicare are broke," he wrote (1). "Millions of Boomers will be homeless or living in RVs as rising oil prices cause the price of food and fuel to rise."

Social Security is indeed facing mounting pressure. A report from the Congressional Budget Office (CBO) projects that the Old-Age and Survivors Insurance Trust Fund — the program that pays retiree and survivor benefits — will run out of money in 2032 (4).