DataPoint: Financial Security of Older Adults

A study designed by the Bureau of Consumer Financial Protection (BCFP) revealed that 24 percent of adults ages 62 and older were financially insecure in 2016. The study was intended to educate older adults to allow them to make informed decisions to meet current and ongoing financial obligations. A financial well-being score was produced based on individual responses to age-, employment-, housing-, and health-related questions. Older adults were found to have an average financial well-being score of 60, while adults ages 18-61 had an average score of 52. Nearly 21 percent of adults ages 62 and over had financial well-being scores above 70, which indicated financial security. The study revealed that average scores increased up to age 75, when a small decline began to show. Older adult homeowners were found to have an average financial well-being score of 62, while elderly renters had an average score of 51. Additionally, older adults living alone had a lower financial well-being score (57) than those who lived with others (61). Health factors like memory loss and emergency department visits also negatively affected financial well-being scores.

This study relied on data from the BCFP’s National Financial Well-Being Survey. To view the results of the survey, click here.

Contact: Ken Allison, kallison@leadingageny.org, 518-867-8820