Nearly 90% of seniors think the United States is experiencing a retirement savings crisisThe Retirement Savings Crisis Survey conducted by AAG reveals 43% of seniors rate the condition of their retirement savings as fair or poor. To read a summary of AAG’s Retirement Savings Crisis Survey, visit here.
IRVINE, Calif., Feb. 15, 2023 /PRNewswire/ — Fearful of outliving their savings, many older homeowners are making difficult lifestyle choices to cut expenses, according to new data from American Advisors Group (AAG). Despite inflation and economic concerns, some seniors have managed to weather the storm without making lifestyle changes. However, some seniors have had to cutback. To learn exactly how seniors are feeling AAG, a national leader in home equity solutions for seniors, conducted the Retirement Savings Crisis Survey, with over 1,500 participants ages 60-75 across the U.S., to gain more understanding.
“The retirement savings crisis is a real thing. Our data highlights the severity of the crisis and the actions seniors are taking to make ends meet,” stated Chris Moschner Chief Marketing Officer American Advisors Group. “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 data shows that seniors are feeling economic strain, and some are fearful that they will outlive their savings.
- 89% of seniors answered “yes” there is a Retirement Savings Crisis
- 43% of seniors rated the condition of their retirement savings as fair or poor
- 47% of seniors say they find it difficult to save for retirement
- 44% of seniors feel they have not saved enough to retire comfortably
- 57% of seniors say they are only somewhat optimistic or not optimistic at all that their level of savings will last through retirement
- Almost 40% of seniors are worried about making ends meet
- Almost 60% of seniors are cutting back on non-essentials to save money
Of those respondents who answered they were cutting back on non-essentials to save money:
- 80% stated that they’ve reduced dining out
- 71% have traveled less
- 62% have cut entertainment/movie costs to reduce expenses
While seniors search for ways to increase their cash flow, senior housing wealth reached a historic high at a record $11.58 trillion, according to the National Reverse Mortgage Lenders Association. Through a federally insured Home Equity Conversion Mortgage (HECM) 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. Reverse mortgage loan borrowers must own and occupy their home as their primary residence, pay all taxes and insurance, maintain the home and comply with all loan terms.
AAG’s Retirement Crisis Survey was conducted in November 2022 and included over 1,500 participants. Responses include numerous formats, including yes-and-no answers, ranking preferences, and multiple-choice replies. The survey was conducted on a digital platform.
AAG is dedicated to helping seniors find new ways to fund a better retirement through the responsible use of home equity. As the nation’s leader in reverse mortgage lending, AAG offers home equity solutions that are designed to give seniors a better financial outcome in retirement. AAG is a proud member of the National Reverse Mortgage Lenders Association (NRMLA). To learn more about AAG and reverse mortgage loans, please visit the company’s website at www.aag.com.
American Advisors Group NMLS# 9392 (www.nmlsconsumeraccess.org). American Advisors Group (AAG) is headquartered at 18200 Von Karman Ave., Suite 300, Irvine, CA 92612. For complete disclosure information, visit https://www.aag.com/legal-information/. These materials are not from HUD or FHA and were not approved by HUD or a government agency.