HOUSTON – The “American dream” seems like it’s just that -- a dream.
The cost of living is not only affecting the youth or recent college graduates’ ability to live the “American dream,” it’s also impacting retirees.
Recommended Videos
According to a new report by BadCredit.org, a financial education platform, 59% of retirees lack sufficient funds for retirement, with more than half forced to change their lifestyle due to financial hardship.
Of those who made lifestyle changes, 88% blame the high cost of living.
RELATED: The Fed’s high rates spur fear of slowdown, yet recession signals have so far proved wrong
“Now more than ever it will be important for people who are currently working — particularly if they’re nearing retirement — to be extremely aggressive with saving and investing for the future,” said BadCredit Finance Expert Erica Sandberg.
The survey of more than 800 Americans age 65 and older found that while 78% of seniors have retired, more than half do not have enough money to maintain their retirement. For those seniors still in the workforce, they don’t expect to retire until they’re at least 73 years old.
RELATED: US hiring fell sharply in July, an unexpected setback for the economy stoking recession fears
Despite retiring at or before age 65, 59% of retirees surveyed said they don’t have enough money for retirement.
- More than 1 in 3 (35%) don’t feel financially stable.
- 35% have struggled to make ends meet after they stopped working.
- 1 in 4 retirees have had to return to work because they lacked sufficient resources.
- Unexpected emergencies and associated costs are the top financial struggles among retirees.
Here’s how retirees are struggling financially in 2024:
- Top ways seniors are cutting expenses: cutting back on dining out, travel, entertainment, and major purchases
- Top financial concerns for 65+ Americans: unforeseen expenses, rising living costs, and outliving savings.
- Top expenses retirees struggle to afford: unexpected emergencies, travel, daily living expenses, home repairs, and maintaining lifestyle.
Among all Americans aged 65 and older, retired or not, the top financial concerns are unforeseen expenses, increased cost of living, and outliving their savings.
Take a look at the full report here.