Financial Concerns Mount for Older Americans: Retirement Expectations Dwindle, Retirement Savings Lag
More than one-quarter of U.S. adults over age 50 say they expect to never retire, and 70% are concerned about prices rising faster than their income, according to an AARP survey released Wednesday. About 1 in 4 have no retirement savings, reflecting the challenges faced by a graying America. Finances are a significant concern for older Americans, with many carrying substantial credit card balances and expressing worries about meeting basic living costs such as food and housing.
Everyday expenses and housing costs, including rent and mortgage payments, remain significant obstacles to retirement savings. The study, based on interviews with over 8,000 people, finds that one-third of older adults carry a credit card balance of more than $10,000, and 12% have a balance of $20,000 or more. Additionally, 37% are worried about meeting basic living costs such as food and housing.
The share of people older than 50 who say they do not expect to retire has steadily increased, reaching 24% in July 2022. Experts attribute this trend to insufficient retirement savings, highlighting the need for financial planning and support for older workers.
As the 2022 congressional elections approach, politicians are vying for the support of older voters, who traditionally turn out in high numbers. Biden has emphasized his support for a $35 price cap on insulin for people on Medicare, while Trump has indicated a willingness to consider cuts to Social Security and Medicare.
The looming financial challenges facing Social Security and Medicare are an additional concern for older Americans. The latest annual report from the program’s trustees warns that these safety nets could run out of money to pay full benefits within the next decade. Medicare’s ability to pay full benefits for inpatient hospital visits and nursing home stays could be compromised by 2031, while Social Security may face a cash shortfall in 2033.
These findings underscore the urgent need for solutions to address the financial security of older Americans and ensure their well-being in retirement.
