Inflation is Affecting Two-Thirds of American Seniors According to AAG Survey
Americans work their entire lives to achieve a comfortable retirement, but inflation and economic trends have made that goal difficult to attain for modern day seniors. New data from American Advisors Group (AAG), the nation’s leader in home equity solutions for seniors, shows that the cost of living and other financial pressures have left seniors concerned about their future. To learn exactly how today’s seniors are feeling about their retirement, AAG conducted the Modern Retirement Survey with over 1,500 participants ages 60-75.
“Many seniors in this country are discovering that their retirement plans aren’t working out as they had hoped, and inflation is only making that reality worse,” said AAG Chief Marketing Officer Martin Lenoir. “With older Americans searching for ways to afford the cost of living and increase their cash flow, it’s no surprise that so many are turning towards reverse mortgages. With housing prices at a historic high, seniors across the country are tapping into their home equity and using the funds to create a comfortable retirement.”
The Data Shows Inflation is Affecting Seniors:
- Inflation is a major cause of concern for seniors. Two-thirds of American seniors (66%) are worried that economic inflation will have a negative impact on their retirement
- Widowed or divorced senior women answered at the highest rate with 72% expressing concern.
- Retirement is more expensive than most seniors had planned for. More than half of America’s seniors (53%) say the cost of living is higher than they expected
- Widowed or divorced senior women answered at the highest rate with 61%.
- Not only is life more expensive for today’s seniors, but many have less financial stability than they planned to have. One in three seniors (36%) say they have less money than they thought they would at this point in their life
- Widowed or divorced senior women answered at the highest rate with 44%.
- For many older Americans, their financial supply is running out. Nearly one-third of seniors (29%) believe they will outlive their money.
- Widowed or divorced senior women answered at the highest rate with 34%
- Many older Americans are in need additional funds to secure an adequate retirement. More than one third (37%) of older Americans say they need to increase their cashflow in order to live comfortably.
- Widowed or divorced senior women answered at the highest rate with 50%.
To read the full results of AAG’s Modern Retirement Survey, visit the link below: https://www.aag.com/retirement-survey-2022
While Americans search for ways to increase their cash flow, senior housing wealth reached a historic high at a record $9.57 trillion, according to the National Reverse Mortgage Lenders Association. Through a federally insured Home Equity Conversion Mortgage loan, more commonly known as a reverse mortgage, seniors aged 62 and older can access their home equity, eliminate their monthly mortgage payments, and remain in their home long term. Seniors who use a reverse mortgage loan to remain in their home long term are required to continue paying their taxes and insurance, live in the home as their primary residence and comply with all terms of the loan.
AAG’s Modern Retirement Survey was conducted on December 8, 2021, and included 1,580 participants. Responses include numerous formats, including yes-and-no answers, ranking preferences, and multiple-choice replies. The survey was conducted on a digital platform so participants from all regions of the United States could answer from the safety of their homes. All participants were selected randomly with age and homeownership being the only qualifying factors.