Financial Security
I would like to retire but don’t feel I can afford to do so and live the life I am accustomed to.
Female, age 621
| 50-plus | 50–64 | 65-plus | |
|---|---|---|---|
| Median household income | $78,400 | $95,100 | $62,800 |
| Median net worth | $357,650 | $324,160 | $388,900 |
- 20% of adults 50-plus who are not retired have no retirement savings
- 53% of adults 65-plus rely on Social Security for more than half of their income
Source: American Community Survey (ACS) PUMS 2022 (median household income); 2022 Survey of Consumer Finances (net worth); “AARP Financial Security Trends Survey,” AARP Research, (Jan 2024) (retirement savings); Current Population Survey 2022 (Social Security).
While financial well-being among older adults varies, concerns over financial security are very prevalent for adults 50 and older. The impact of inflation, everyday expenses, and having enough money to last throughout retirement are top of mind. At the same time, older adults overall tend to have higher rates of financial well-being than their younger counterparts likely due to a combination of factors associated with life stage (fewer debts, higher savings, Social Security, etc.) as well as financial challenges faced by different generations. Topics discussed include:
Financial Well-Being
Overall, financial well-being is higher for older adults than younger adults.
The Consumer Financial Protection Bureau’s (CFPB) financial well-being score, a self-reported measure based on being able to meet current and ongoing financial obligations, feeling financially secure in the present and future, and being able to make choices that allow one to enjoy life, is higher, on average for older adults than younger adults, according to their 2018 report.2 Further, AARP data show adults 65-plus rate their financial health stronger than those 50–64.
The CFPB report also found older adults who routinely save money and engage in effective day-to-day money management and planning behaviors such as setting financial goals, consulting a budget, and preparing an action plan have a higher financial well-being score than older adults who do not engage in these behaviors.
Financial well-being score increases with age.
Average financial well-being score by age and gender, marital status, 2018
| Group | Category | Value |
|---|---|---|
| Female | Ages 18–29 | 50 |
| Female | Ages 30–44 | 52 |
| Female | Ages 45–61 | 54 |
| Female | Ages 62+ | 59 |
| Male | Ages 18–29 | 51 |
| Male | Ages 30–44 | 52 |
| Male | Ages 45–61 | 54 |
| Male | Ages 62+ | 61 |
FINANCIAL ANXIETY EXISTS ACROSS FINANCIAL SITUATIONS
Forrester Research segmented online adults by financial means and anxiety. Two in five adults 50-plus were anxious about their financial situation, including those who were living paycheck to paycheck and those who were not.
| Feel anxious about my financial situation | Don’t feel anxious about my financial situation | |
|---|---|---|
| Live paycheck to paycheck | Stretched spenders | Carefree spenders |
| Don’t live paycheck to paycheck | Security seekers | Cushioned savers |
Base: 4,461 US Online adults age 50+
Source: Forrester’s Financial Services Benchmark Recontact Survey, 2023.
Still, among older adults themselves, financial well-being varies widely, and many older adults face financial insecurity.
Those with higher financial well-being scores tend to have fewer structural obstacles to saving/accumulating wealth. Women and Black and Hispanic adults tend to have lower financial well-being scores due to structural obstacles and discrimination. Unmarried adults also tend to have lower financial well-being. In addition, those with lower financial scores were more likely to have experienced an unexpected job loss or reduction in work hours, health crises or expenses, living alone, or accumulated debt.
Financial well-being varies by race/ethnicity, education and income.
Financial well-being score of adults ages 62-plus
| Group | Category | Value |
|---|---|---|
| Female | 10th percentile | 42 |
| Female | 25th percentile | 50 |
| Female | Mean | 59 |
| Female | 75th percentile | 68 |
| Female | 90th percentile | 78 |
| Male | 10th percentile | 44 |
| Male | 25th percentile | 51 |
| Male | Mean | 61 |
| Male | 75th percentile | 69 |
| Male | 90th percentile | 80 |
While one-third of adults 50-plus rate their financial health as very good or better, more than one-third rate their financial health fair or poor.
Rating of overall financial health by age, income, race/ethnicity, marital status and employment disruption, among adults 50-plus.
| Group | Category | Value |
|---|---|---|
| Total (n=2,116) | Excellent or very good | 34% |
| Total (n=2,116) | Good | 28% |
| Total (n=2,116) | Fair or poor | 38% |
Despite widely reported concerns about finances among older adults, “having enough money to take care of yourself” is generally less concerning with age.
Very or extremely concerned about having enough money to take care of oneself when thinking about growing older, by age
| Group | Category | Value |
|---|---|---|
| Having enough money to take care of yourself | Under 40 | 55% |
| Having enough money to take care of yourself | 40s | 44% |
| Having enough money to take care of yourself | 50s | 45% |
| Having enough money to take care of yourself | 60s | 41% |
| Having enough money to take care of yourself | 70s | 37% |
| Having enough money to take care of yourself | 80+ | 38% |
Spotlight: The Elder Index
The Elder Index,3 developed by the University of Massachusetts Boston, measures the cost of living for older adults 65-plus, accounting for the market basket of goods and services that older households require to live independently in their own homes. The index is based on the characteristics and spending patterns of older adult households. It includes the costs of housing, health care, transportation, food, and miscellaneous essentials. Estimates from 2022 suggest that nationally nearly half (48%) of older adults living alone, and one out of five older couples (21%), lack the financial resources to pay for these basic needs and age in place in their homes. In every state, at least one-third of older singles are at risk.
Source: “Elder Economic Security Standard™ Index (Elder Index),” Gerontology Institute at the University of Massachusetts, Boston, (February 14, 2023).
Distribution of older adults by economic security based on the Elder Index, 2022.
By household size, among adults 65-plus
| Group | Category | Value |
|---|---|---|
| Alone | Below the Federal Poverty Line | 16% |
| Two-person | Below the Federal Poverty Line | 4% |
| Alone | In the gap | 32% |
| Two-person | In the gap | 17% |
| Alone | Above the Elder Index | 52% |
| Two-person | Above the Elder Index | 79% |
Cost of Living
Worries about finances today and for the future are top of mind for adults 50-plus, especially those who have not yet retired.
Everyday expenses are top of mind as inflation concerns the majority of adults 50-plus. Between July 2022 and July 2023, three quarters (76%) of adults 50 or over took some sort of action because of inflation, including cutting back on extras (51%) as well as basics (46%).4 Further, most adults 50 and older are concerned about having enough to be financially secure throughout their retirement years.
Many adults 50 or over are very or somewhat worried about large, unexpected expenses in their retirement years, with long-term care and health care expenses most worrying.
Percent who are very or somewhat worried
| Group | Category | Value |
|---|---|---|
| Total | Unexpected long term care expenses for yourself or your spouse | 66% |
| Total | Unexpected healthcare expenses | 59% |
| Total | Unexpected increases in insurance for a home, car, or other property | 53% |
| Total | Unexpected tax increases | 53% |
| Total | Unexpected home repairs | 50% |
| Total | Unexpected car repairs or needing to buy a new car | 49% |
| Total | Unexpected financial support for a parent, adult child, or other adult relative | 30% |
| Total | Unexpected caregiving for a parent, adult child, or other adult relative who is physically or mentally impaired | 28% |
| Total | Unexpected increases in HOA or condo fees | 18% |
| Total | Unexpected education costs for yourself or a loved one | 13% |
Older adults have present and future financial concerns, including inflation and having enough money in retirement, especially concerning to those who have not retired.
Percent somewhat or very worried about the following, among adults age 50-plus
| Group | Category | Value |
|---|---|---|
| Total | Prices rising faster than your income | 72% |
| Total | Having enough money to be financially secure throughout your retirement years | 61% |
| Total | Protecting yourself against financial fraud | 54% |
| Total | Being able to manage your debt | 38% |
| Total | Having good employment opportunities | 27% |
| Total | Juggling the demands of working while also caring for a family member, other relatives, or loved ones | 21% |
Income, Savings, and Assets
Current retirees’ expected income comes from far fewer sources than those who are not yet retired expect.
Nine in ten adults 50-plus rely or expect to rely on Social Security during retirement—whether they are retired yet or not. However, those not yet retired are far more likely to expect workplace income. This difference may represent changing norms of working longer but may also indicate that this widespread expectation may be somewhat unrealistic.5
A greater share of Asian American and Pacific Islander adults 50 and older expect to rely on various sources of savings and investments in retirement, including workplace savings plans (i.e. 401k), individual retirement accounts, and proceeds from selling their home. Black adults are least likely to say they expect to rely on these sources of savings and investments.
Social Security is a significant source of retirement income for current retirees, with income from working and retirement accounts significantly less common than adults not yet retired expect.
Percent of adults 50 and older who expect each to be a major or minor source of income during retirement years
| Group | Category | Value |
|---|---|---|
| Total | Social Security | 91% |
| Total | Money from a workplace retirement savings plan such as a 401k, 403b, payroll deduction IRA, thrift savings plan, or other retirement savings plan offered by an employer | 63% |
| Total | Income from working | 52% |
| Total | A traditional employer-funded pension plan that supplies retirees with a monthly income, typically based on a formula of salary and years of service (This is not a 401(k) plan.) | 52% |
| Total | Money from an individual retirement account (IRA) outside of work | 48% |
| Total | Money from selling your house | 33% |
| Total | An inheritance | 28% |
| Total | Rental income that you receive from renting out a home that you own | 17% |
| Total | Other savings or investments | 56% |
Adults age 65 and older depend on Social Security.
While estimates vary, the Current Population Survey6 estimates that in 2022, 53% of beneficiaries 65-plus relied on Social Security for more than half of their income, and 26% relied on it for more than 90%. The survey estimates that more than 16 million people 65 or older are kept out of poverty by the program.
While most have savings for emergencies and for retirement, a notable portion do not.
A third of adults 50-plus (33%) have no money set aside for emergencies. Black (50%) and Hispanic adults (48%) are more likely than adults 50-plus overall not to have emergency savings. One in five (20%) nonretired adults 50-plus have no retirement savings, with women (22%), those with less than $40k in household income (53%), and Hispanic (27%) Americans especially likely to have no retirement savings.7
One third of adults ages 50-plus do not have money set aside for emergencies.
Percent who have emergency savings among adults 50-plus
| Group | Category | Value |
|---|---|---|
| Total | Have money set aside for a financial emergency, or emergency savings | 66% |
| Total | Do not | 33% |
One in five have no retirement savings.
Total retirement savings among non-retired adults 50-plus
| Group | Category | Value |
|---|---|---|
| Total | Nothing | 20% |
| Total | >$0–$49,999 | 28% |
| Total | $50,000–$99,999 | 10% |
| Total | $100,000–$299,999 | 16% |
| Total | $300,000–$499,999 | 9% |
| Total | $500,000–$999,999 | 10% |
| Total | $1,000,000 or more | 7% |
Adults 50-plus report that their savings and long-term financial security are directly impacted by everyday expenses.
Specifically, among adults 50-plus who have not yet retired, six in ten say that everyday expenses prevent them from saving more for emergencies; and half of all adults 50-plus say everyday expenses interfere with saving more for retirement. Debt payments and housing costs are also top barriers to saving more.8
Hispanic adults 50-plus exceed all segments in indicating that everyday expenses and housing costs are a top barrier for saving. Additionally, Hispanic and Asian American or Pacific Islander adults are more likely to say that providing financial support to a parent, adult child, or other relative is a barrier to their own savings.
Adults 50-plus rate everyday expenses as the top barrier preventing them from saving for emergencies and retirement.
Percent who say the following prevent them from saving more for emergencies or retirement
| Group | Category | Value |
|---|---|---|
| Total | Everyday expenses | 62% |
| Total | Debt payments (including mortgage debt, student loan debt, medical debt, credit card debt, or any other type of debt) | 38% |
| Total | Housing costs (such as rent, mortgage payments, property taxes) | 38% |
| Total | Saving for retirement | 22% |
| Total | Healthcare costs | 21% |
| Total | Overspending/poor spending habits | 15% |
| Total | Providing financial support to a parent, adult child, or other adult relative | 9% |
| Total | Don’t know where to start | 8% |
| Total | Education costs for yourself or others | 7% |
| Total | Your employer doesn’t offer a way to save for emergencies | 5% |
| Total | Need advice | 4% |
| Total | Don’t have the time | 3% |
| Total | Childcare costs | 2% |
| Total | Other | 6% |
| Total | Don’t think you need to save more for emergencies | 8% |
Many of those who are regularly saving for retirement remain uncertain if they will be financially secure.
Over a third of those 50-plus who are not retired and contributing regularly to a retirement savings account say they will not be secure (35%), and over a quarter (28%) say they do not know.9
Historic factors and structural inequities result in major discrepancies in family wealth by race/ethnicity.
Median net worth by age and race/ethnicity of reference person, among adults 50-plus
| Group | Category | Value |
|---|---|---|
| Total | Total | $357,650 |
| Total | Black, non-Hispanic | $115,000 |
| Total | Hispanic | $143,821 |
| Total | White, non-Hispanic | $426,800 |
Debt
Most older adults carry debt.
Three in four (75%) adults 50-plus currently carry some form of debt month over month. Adults 50–64 are especially likely to carry debt; however, the majority of adults 65–74 and adults 75-plus also carry debt.12
The percentage of older adults carrying debt and the median amount they carry has increased over the past three decades.
These increases are higher than those of younger adults in aggregate, although younger adults carry more debt. The percent holding debt has increased by 9% for those 55–64, 30% for adults 65–74, and 155% for those ages 75 and older compared to the same age cohorts in 1989. The median amount carried by adults 55-plus increased between 300% and 400%.13
Both percent holding debt and the median amount of debt carried among adults 55 or over has increased at a significantly higher rate in recent years than younger age groups.
Percent holding debt and median debt held (in $ thousands), by age range
| Group | Category | Value |
|---|---|---|
| Under 35 | 1989 | 80 |
| Under 35 | 1992 | 82 |
| Under 35 | 1995 | 83 |
| Under 35 | 1998 | 81 |
| Under 35 | 2001 | 83 |
| Under 35 | 2004 | 80 |
| Under 35 | 2007 | 84 |
| Under 35 | 2010 | 78 |
| Under 35 | 2013 | 77 |
| Under 35 | 2016 | 81 |
| Under 35 | 2019 | 79 |
| Under 35 | 2022 | 86 |
| Ages 35–44 | 1989 | 89 |
| Ages 35–44 | 1992 | 86 |
| Ages 35–44 | 1995 | 87 |
| Ages 35–44 | 1998 | 88 |
| Ages 35–44 | 2001 | 89 |
| Ages 35–44 | 2004 | 89 |
| Ages 35–44 | 2007 | 86 |
| Ages 35–44 | 2010 | 86 |
| Ages 35–44 | 2013 | 85 |
| Ages 35–44 | 2016 | 86 |
| Ages 35–44 | 2019 | 87 |
| Ages 35–44 | 2022 | 87 |
| Ages 45–54 | 1989 | 85 |
| Ages 45–54 | 1992 | 85 |
| Ages 45–54 | 1995 | 86 |
| Ages 45–54 | 1998 | 87 |
| Ages 45–54 | 2001 | 85 |
| Ages 45–54 | 2004 | 88 |
| Ages 45–54 | 2007 | 87 |
| Ages 45–54 | 2010 | 84 |
| Ages 45–54 | 2013 | 82 |
| Ages 45–54 | 2016 | 87 |
| Ages 45–54 | 2019 | 86 |
| Ages 45–54 | 2022 | 87 |
| Ages 55–64 | 1989 | 71 |
| Ages 55–64 | 1992 | 70 |
| Ages 55–64 | 1995 | 74 |
| Ages 55–64 | 1998 | 76 |
| Ages 55–64 | 2001 | 76 |
| Ages 55–64 | 2004 | 76 |
| Ages 55–64 | 2007 | 82 |
| Ages 55–64 | 2010 | 78 |
| Ages 55–64 | 2013 | 79 |
| Ages 55–64 | 2016 | 77 |
| Ages 55–64 | 2019 | 77 |
| Ages 55–64 | 2022 | 77 |
| Ages 65–74 | 1989 | 50 |
| Ages 65–74 | 1992 | 51 |
| Ages 65–74 | 1995 | 53 |
| Ages 65–74 | 1998 | 51 |
| Ages 65–74 | 2001 | 57 |
| Ages 65–74 | 2004 | 59 |
| Ages 65–74 | 2007 | 66 |
| Ages 65–74 | 2010 | 65 |
| Ages 65–74 | 2013 | 66 |
| Ages 65–74 | 2016 | 70 |
| Ages 65–74 | 2019 | 70 |
| Ages 65–74 | 2022 | 65 |
| Ages 75+ | 1989 | 21 |
| Ages 75+ | 1992 | 32 |
| Ages 75+ | 1995 | 28 |
| Ages 75+ | 1998 | 25 |
| Ages 75+ | 2001 | 29 |
| Ages 75+ | 2004 | 40 |
| Ages 75+ | 2007 | 31 |
| Ages 75+ | 2010 | 39 |
| Ages 75+ | 2013 | 41 |
| Ages 75+ | 2016 | 50 |
| Ages 75+ | 2019 | 51 |
| Ages 75+ | 2022 | 53 |
Many adults 50-plus who carry debt month over month view their level of debt as problematic.
Roughly six in ten adults 50-plus (61%) who carry debt consider their level of debt to be a problem, including 16% who consider it a major problem.14
61% of adults 50-plus believe their debt is a problem.
Degree to which debt is a problem
| Group | Category | Value |
|---|---|---|
| Total | Major problem | 16% |
| Total | Minor problem | 45% |
| Total | Not a problem | 39% |
Credit card debt is the most common type of debt, followed by mortgages and car loans.
Among adults 50-plus who carry debt, roughly six in ten (59%) carry credit card balances month over month, a reflection of the impact of everyday expenses on savings and financial security. Further, nearly half have mortgages. Car loans are the third most common type of debt for older adults.15
White adults are more likely than other segments to carry mortgage debt. Black and Hispanic adults 50-plus exceed White adults in having unpaid balances on their credit card, and health and utility bills, as well as having student loans. Contributing to debt, nearly a third of Black and Hispanic adults 50-plus are impacted by an inability to work due to disability or illness, compared to 16% of White adults 50-plus.
Credit card debt is the most common kind of debt for adults 50-plus.
Type of debt carried from month to month among adults 50-plus
| Group | Category | Value |
|---|---|---|
| Total | A credit card balance | 59% |
| Total | A mortgage | 48% |
| Total | A car, motorcycle, or other vehicle loan (from a bank, credit union, finance company, etc.) | 41% |
| Total | Personal loan from a bank, credit union, or other financial institution | 26% |
| Total | Unpaid balance on a health/medical bill | 22% |
| Total | A home equity loan or home equity line of credit | 14% |
| Total | Other installment loan such as for appliances, electronics, furniture | 12% |
| Total | Unpaid balance on a utility or phone/wireless bill | 12% |
| Total | Personal loan from a family member or friend | 9% |
| Total | A student loan for a family member (i.e., Parent Plus or private loan) | 9% |
| Total | A student loan – yours (federal or private loan) | 9% |
| Total | Loan from a retirement plan such as a 401(k) | 5% |
| Total | Loan from a payday lender | 4% |
| Total | Car title loan - This is a special loan that allows you to borrow against the value of your vehicle when you need money | 3% |
Housing and vehicle costs, along with everyday expenses, contribute most to older adults’ debt.
Major reasons for current debt among adults 50-plus
| Group | Category | Value |
|---|---|---|
| Total | Housing costs (such as costs related to purchasing a home, rent, mortgage payments, property taxes, renters or homeowners’ insurance, condo fees, repairs and maintenance) | 36% |
| Total | Vehicle costs (such as costs related to purchasing a car or other vehicle, vehicle repairs, vehicle insurance, vehicle loan payments, property taxes on vehicles) | 23% |
| Total | Everyday expenses | 20% |
| Total | Unable to work due to disability or illness (you or a family member) | 20% |
| Total | Job loss (yours or a family member’s) | 16% |
| Total | Healthcare/medical expenses (yours or a family member’s) | 16% |
| Total | Had work hours cut or salary cut, or worked less than expected (without losing a job) | 12% |
| Total | Death of spouse or other family member | 12% |
| Total | Education expenses (for yourself or a family member) | 10% |
| Total | Experienced a natural disaster (for example, a wildfire, hurricane, flood or other natural event) | 10% |
| Total | Major purchase other than a home or vehicle | 10% |
| Total | Shopping habits (your own habits or a family member’s) | 9% |
| Total | Divorce | 8% |
| Total | Provided financial assistance to an adult family member (besides a spouse) | 8% |
| Total | Lost money due to fraud or a scam | 7% |
The emotional impact of carrying debt is real and especially widespread among those who view their debt as problematic.
One in three (34%) adults 50-plus who carry debt say that their debt has caused them to feel stressed within the past 12 months, and approximately one in five say that it has caused them to feel depressed. Among adults who view their debt as a major problem, three in four have felt stressed and more than half have felt depressed due to their debt, compared to just 9% and 4%, respectively, among adults who don’t view their debt as a problem.16
Feeling stressed, depressed and/or having trouble sleeping are common among those who say their debt is problematic.
Emotional impact of debt in the past 12 months, among adults 50-plus
| Group | Category | Value |
|---|---|---|
| Total | Any (NET) | 47% |
| Total | Feel stressed | 34% |
| Total | Feel uncertain about your future financial security | 28% |
| Total | Feel depressed | 19% |
| Total | Have trouble sleeping | 16% |
| Total | Feel physically ill (headache, stomachache, etc.) | 10% |
| Total | Have disagreements with your spouse | 9% |
| Total | None of the above | 52% |
For many adults 50-plus who carry debt, their debt may affect their retirement security.
Roughly two in three adults 50-plus who carry debt say that their debt has reduced (or is reducing) their ability to save for retirement, including 85% of those who view their debt as a major problem and 45% of those who don’t view their debt as a problem. Many express uncertainty about when they will pay off their debt or expect to carry it into retirement.
Problematic debt makes saving for retirement more difficult.
Impact on ability to save for retirement by degree to which debt is a problem, among adults 50-plus
| Group | Category | Value |
|---|---|---|
| Total (n=7,387) | A lot | 25% |
| Major problem (n=1,381) | A lot | 62% |
| Minor problem (n=3,341) | A lot | 27% |
| Not a problem (n=2,648) | A lot | 8% |
| Total (n=7,387) | A little | 43% |
| Major problem (n=1,381) | A little | 23% |
| Minor problem (n=3,341) | A little | 55% |
| Not a problem (n=2,648) | A little | 37% |
| Total (n=7,387) | Not at all | 31% |
| Major problem (n=1,381) | Not at all | 15% |
| Minor problem (n=3,341) | Not at all | 17% |
| Not a problem (n=2,648) | Not at all | 54% |
Employment
Financial security is the biggest motivator for working.
Almost all workers 40-plus (96%) say having money is an important reason they are working or looking for work. This is closely followed by saving for retirement (89%). Those in their 50s are especially likely to be motivated by saving for retirement (94%).18
Older adults may be working or plan to work through traditional retirement age for both financial and non-financial reasons but primarily for financial reasons.
More than half (55%) of adults 50-plus who are not yet retired expect either to work for pay in retirement (32%) or never retire (23%). Three-quarters of adults 50-plus who expect to work in retirement give a financial reason for this expectation (77%).19 However, as stated earlier, current retirees’ retirement income is from fewer sources than future retirees expect, which could indicate changing norms but also that an expectation to work in retirement may not be realistic for all, as many retire earlier than expected (See Retirement).
Older jobseekers are more likely to experience long-term unemployment, which is defined as looking for work for 27 weeks or more.
In June 2024, the percentage of job seekers age 55-plus who were long-term unemployed was 27.8% compared to 18.9% of job seekers ages 16 to 54.20 This issue may become more pronounced as individuals increasingly plan to work during traditional retirement years.
Long-term unemployment can exacerbate financial stresses including those related to everyday expenses, savings, and debt.
As such, impact on well-being will be most pronounced for those with fewer financial resources or greater financial strain. Beyond financial issues, the associated effects of unemployment on well-being are numerous, including stress, loss of identity or purpose, loss of confidence, loss of social interaction, loss of health insurance, etc.21
Key Takeaways
-
Older adults tend to rate their financial well-being higher than younger adults and anxieties around being able to take care of oneself financially while growing older tend to level out around ages 60–70. However, financial experiences vary widely and financial security is not experienced equally by all groups. Owing to structural factors, women, Black, and Hispanic adults in particular rate their financial well-being lower.
-
Unexpected expenses still loom as a concern, with long-term care expenses being the primary concern across groups for adults 50-plus. Asian American or Pacific Islander and Hispanic adults 50-plus show greater concern across nearly all unexpected expense types.
-
Three-quarters of today’s adults 50-plus are debtholders, exceeding previous generations. Credit card balances are the primary type of debt for adults 50 or over, especially for Black and Hispanic adults, followed by mortgages. Unsecured and problematic debt have an adverse emotional impact, eliciting stress, depression, and uncertainty, and erodes older adults’ sense of retirement security and capacity to save.
-
The proportion of adults 50-plus who are not retired and expect workplace income in retirement years far exceeds the proportion of current retirees who say workplace income is a source of income in retirement. While this difference could point to new norms around working later in life, it may also reflect a somewhat unrealistic expectation, as many retirees report having to retire earlier than expected. Social Security remains the most common source of income during retirement years.
See also:
For more information related to financial security, see:
- The Lived Experience of Adults 50-plus: Retirement
- The People Say : Finances for Basic Needs
Sources
- Feedback Loop Qualitative Research, AARP, June 2023 (Unpublished).
- Consumer Financial Protection Bureau, “Financial Well-Being of Older Americans,” Office of Financial Protection for Older Americans, December 2018. https://www.consumerfinance.gov/data-research/research-reports/financial-well-being-older-americans/.
- “The National Elder Economic Security Standard™ Index (Elder Index),” Gerontology Institute at the University of Massachusetts, Boston, February 14, 2023, https://scholarworks.umb.edu/gerontologyinstitute_pubs/75/.
- S. Kathi Brown, AARP Financial Security Trends Survey, Washington, DC: AARP Research, July 2023, https://www.aarp.org/pri/topics/work-finances-retirement/financial-security-retirement/financial-security-trends-survey-wave4/.
- Brown, AARP Financial Security Trends Survey, July 2023.
- AARP Public Policy Institute analysis of Current Population Survey, 2004-2022. Unpublished.
- Brown, “AARP Financial Security Trends Survey,” July 2023;. S. Kathi Brown, AARP Financial Security Trends Survey, Washington, DC: AARP Research, January 2024. https://doi.org/10.26419/res.00525.040.
- Brown, AARP Financial Security Trends Survey, July 2023.
- Brown, AARP Financial Security Trends Survey, July 2023.
- Ana Hernandez Kent and Lowell Ricketts, “Wealth Gaps Between White, Black and Hispanic Families in 2019,” Federal Reserve Bank of St. Louis. https://www.stlouisfed.org/on-the-economy/2021/january/wealth-gaps-white-black-hispanic-families-2019.
- Horowitz, Juliana, and Kim Parker. 2023. “How Americans View Their Jobs.” Pew Research Center’s Social & Demographic Trends Project. Pew Research Center. March 30, 2023. https://www.pewresearch.org/social-trends/2023/03/30/how-americans-view-their-jobs/.
- S. Kathi Brown, On The Hook: Debt and The 50+. Washington, DC: October 2023. https://www.aarp.org/pri/topics/work-finances-retirement/financial-security-retirement/older-adults-debt-survey.html.
- Survey of Consumer Finances, 1989–2022; https://www.federalreserve.gov/econres/scf/dataviz/scf/chart/#series:Debt;demographic:agecl;population:1,2,3,4,5,6;units:have.
- Brown, On The Hook: Debt and The 50+.
- Brown, On The Hook: Debt and The 50+.
- Brown, On The Hook: Debt and The 50+.
- Stipica Mudrazija and Barbara A. Butrica, “How Does Debt Shape Health Outcomes for Older Americans?” Working Paper 2021-17. Chestnut Hill, MA: Center for Retirement Research at Boston College, November 8, 2021. https://crr.bc.edu/how-does-debt-shape-health-outcomes-for-older-americans/.
- Choi-Allum, Lona. Understanding a Changing Older Workforce: An Examination of Workers Ages 40-Plus. Washington, DC: AARP Research, January 2023. https://www.aarp.org/pri/topics/work-finances-retirement/employers-workforce/multicultural-work-jobs-study-2023/.
- Brown, AARP Financial Security Trends Survey, July 2022.
- U.S. Department of Labor, Bureau of Labor Statistics, analysis by AARP Policy, Research and International. https://www.aarp.org/pri/topics/work-finances-retirement/employers-workforce/employment-data-digest/.
- Stephanie Pappas, “The Toll of Job Loss,” Monitor on Psychology, Vol. 51, No. 7, October 1, 2020. https://www.apa.org/monitor/2020/10/toll-job-loss.