According to a survey released on Wednesday by American Advisors Group (AAG), about 89% of seniors believe there is currently a retirement savings crisis in the United States. This offers further insight into the mindsets of older Americans who are navigating historic levels of inflation and increased living costs.
The survey — conducted in November 2022 with 1,523 participants — also showed that 43% of seniors rated the condition of their retirement savings as either “fair” or “poor,” and 47% of seniors said they found it difficult to save for retirement.
In addition, the survey showed that 44% of seniors do not feel they have saved enough to retire comfortably, and another 57% of respondents said they were either “somewhat” or “not at all” optimistic that their savings will last through retirement. Nearly 40% of seniors also said they were worried about their ability to make ends meet.
“The retirement savings crisis is a real thing,” said Chris Moschner, CMO of AAG, in a statement. “Our data highlights the severity of the crisis and the actions seniors are taking to make ends meet. In inflationary times like these a reverse mortgage is one option seniors can utilize to generate increased cash flow by unlocking their home equity and easing the pressures on everyday expenses.”
The survey also offered insight into the measures some seniors are taking to reduce their living costs. Per the data, about 80% of seniors have cut back number of times they go out to eat a meal at a restaurant, while 71% have dialed back their frequency of travel. Another 62% have cut costs associated with entertainment.
The survey was conducted digitally to allow all respondents to participate from home, and participants were selected randomly with age and homeownership status serving as the only qualifying factors.
AAG is currently in the process of being acquired by Finance of America Companies (FOA), but the company has recently put additional resources into its educational efforts. Last month, AAG released a reverse mortgage informational guide specifically aimed at journalists.
