A new study found many older adults think they’ll never retire and worry about making ends meet due to everyday expenses and housing costs.
The cost of living is so high it’s the biggest reason why people can’t save for retirement.
A new AARP survey found 1 in 4 U.S. adults aged 50 and older who aren’t yet retired have *no* retirement savings. Credit card debt is also a barrier.
AARP says one-third of older adults with credit card debt carry a balance of more than $10,000 while 12% have a balance of more than $20,000.
“First things first, take some time to go find some financial literacy classes online. There are some really great resources you can find online to help you with your budget,” said Sanjay Varshney with Goldenstone Wealth Management. “Part-time jobs are available. Today we have 5 million more jobs than the number of people that can fill those jobs.”
Varshney also says more older adults are staying in the workforce longer — not because they’re living longer, but for financial needs. Many seniors aren’t collecting Social Security until age 67.
Varshney recommends taking a close look at expenses. It could mean reaching out to family and friends for help, moving to a more affordable city or state, or getting resources from charities or senior organizations.
The financial health of Social Security and Medicare are also big factors impacting when people decide to retire.
As for advice on choosing when to retire? It’s a personal choice.
Varshney says one of the worst things you can do is jump into retirement when you’re not ready.
It’s a different story if you’re forced into retirement for health reasons, but if you’re choosing to retire, look at your finances to make sure you can afford to.
