AARP Research Insights on Financial Resilience

AARP Research on financial resilience highlights U.S. adults' experiences with and feelings about savings and planning, workforce and employers, fraud, and Social Security.

Fraud

Older adults have high levels of concern around scams and fraud. Their fear is well-founded, given the number of people who have been targeted by criminals.

• Nearly 6 in 10 (57%) U.S. adults age 45 and older are somewhat, very, or extremely concerned about becoming a target or victim of a scam. [Source: AARP Vital Voices: Consumer Fraud Among U.S. Adults Ages 45+]
• Nine in 10 American adults age 18-plus (229 million people) encountered a fraud attempt in the past year and one in seven  (15%), or an estimated 33.5 million people, spent money on at least one scam in 2020. [Source: A Moment's Notice: Recognizing the Stressful Life Events, Emotions and Actions That Make Us Susceptible to Scams. An AARP National Fraud Frontiers Report]
• Over a third (35%) of U.S. consumers have experienced fraud when seeking to buy a product through an online ad. One in four (27%) have had a package stolen from outside their door. One in four (26%) have given or received a gift card with no balance. [Source: Holiday Shopping and Scams Survey of U.S. Adult Consumers]

Scammers use emotions, environment, and exposure to increase targets’ susceptibility to fraud.

• A scammer’s goal is to get their target into a heightened emotional state so they are easier to persuade and control. Victims are more likely than nonvictims to act without thinking when they are upset (44% vs. 32%) and when they are excited (39% vs. 26%). And victims are five times more likely than nonvictims (33% vs. 6%) to report feeling out of control at the time of the fraud encounter. [Source: A Moment's Notice: Recognizing the Stressful Life Events, Emotions and Actions That Make Us Susceptible to Scams. An AARP National Fraud Frontiers Report]
• Both positive and negative stressful life events (e.g., birth of a child, buying a house, losing a job, loneliness) can increase one’s susceptibility to fraud by hindering the ability to spot and resist fraud attempts. On average, victims reported experiencing twice as many stressful life events in the past 12 months as nonvictims (4 vs. 2). [Source: A Moment's Notice: Recognizing the Stressful Life Events, Emotions and Actions That Make Us Susceptible to Scams. An AARP National Fraud Frontiers Report]
• Victims are more likely than nonvictims to report sometimes or frequently engaging in specific consumer activities. These include entering their name in a drawing to win a free prize or gift (41% vs. 29%), purchasing a product or service in response to an ad seen on television (34% vs. 15%) or in response to a pop-up ad on social media from a company or individual with whom they had not previously done business (32% vs. 14%), using a peer-to-peer payment platform to send money to someone they know, although not well (32% vs. 21%), or to an individual seller (not a retailer) with whom they have not previously done business (31% vs. 19%). [Source: A Moment's Notice: Recognizing the Stressful Life Events, Emotions and Actions That Make Us Susceptible to Scams. An AARP National Fraud Frontiers Report]

In addition to increasing awareness of one’s emotional state, more education is needed about safe shopping practices.

• Among a survey of consumers age 18-plus, most respondents  failed a nine-question safe-shopping quiz, with only 22% of respondents able to answer seven or more questions correctly. [Source: Holiday Shopping and Scams Survey of U.S. Adult Consumers]
• 63% of U.S. consumers age 18-plus incorrectly think (or aren’t sure) that online retailers will request their login information to provide customer support. [Source: Holiday Shopping and Scams Survey of U.S. Adult Consumers]

Consumers support stronger protections from lawmakers.

• Nearly all (90%) U.S. consumers 18-plus agree that lawmakers need to do more to protect the public from fraud and scams, with almost two-thirds (64%) saying they strongly agree. [Source: Holiday Shopping and Scams Survey of U.S. Adult Consumers]

Savings & Planning

Despite slowing, inflation remains a concern.

• Three-fourths of adults 30-plus (74%) worry about prices rising faster than their income. And while over seven in ten adults ages 50-plus (72%) worry about this, adults ages 30–49 are even more likely to do so (77%). [Source: AARP Financial Security Trends Survey: January 2023]

Adults ages 30-plus have numerous financial worries in addition to inflation, many of which vary by age. 

• Optimism about the future is at its highest since January 2022, with 41% of adults 30-plus expecting their finances to be better next year, up from 39% who expressed such expectations in January 2023 and 36% in January 2022.
• Sense of personal financial security among adults 30-plus remains unchanged since January 2022, with 57% rating their financial situation as either good or excellent today, which is unchanged from the 58% who felt the same in January 2023.
• Men of all ages and income groups feel less financially secure than they did in January 2022. Today, a full 42% of all men ages 30-plus describe their financial situation as only fair or poor, up from 34% when the survey began in January 2022.
• Despite the decline in men's sense of financial security, men appear to be better off than women. For example, men are more likely than women to have emergency savings and retirement savings and less likely to view their debt as unmanageable.
• Most adults age 30-plus (66%) worry about having enough money to be financially secure throughout their retirement years. Adults ages 30–49 are more likely than adults age 50-plus to worry about this (73% vs. 60%). [Source: AARP Financial Security Trends Survey: January 2023]  Nearly all (90%) of adults age 45-plus believe having enough income or savings to retire is at least very important. [Source: AARP Vital Voices, 2022–2024]
• Most adults ages 30-plus (61%) worry about having enough money to cover a large, unexpected expense. Again, adults ages 30–49 are more likely than adults age 50-plus to be worried about this (68% vs. 56%). [Source: AARP Financial Security Trends Survey: January 2023]
• About half of adults age 30-plus (52%) worry about protecting themselves against financial fraud. Worry does not differ significantly by age, as 54% of adults ages 30–49 and 51% of adults age 50-plus worry about this. [Source: AARP Financial Security Trends Survey: January 2023] In fact, 79% of adults age 45-plus believe protecting yourself against consumer fraud is very or extremely important. [Source: AARP Vital Voices, 2022–2024]
• Nearly half of adults age 30-plus (45%) worry about being able to manage their debt. Adults ages 30–49 are more likely than adults age 50-plus to worry about this (56% vs. 38%). [Source: AARP Financial Security Trends Survey: January 2023]

The largest barriers to saving for emergencies and saving for retirement are everyday expenses, housing costs, and debt.

• Everyday expenses, housing costs, and debt are the top barriers to saving both for emergencies and for retirement. Roughly six in ten adults age 30-plus cite everyday expenses as a barrier to emergency saving, while roughly four in ten cite debt and housing costs as barriers.  Over half (54%) cite everyday expenses as a barrier to retirement savings, while roughly one in three cite housing costs (36%) and debt (34%) as barriers to retirement savings. [Sources: AARP Financial Security Trends Survey: January 2023 and AARP Financial Security Trends Survey: July 2022]

Debt, coupled with inflation, continues to burden many adults age 30-plus.

• Consistent with a year ago, eight in ten adults age 30-plus carry debt from month to month. Among them, 42% say their debt is not manageable. Adults ages 30–49 are more likely than adults age 50-plus with debt to find their amount of debt unmanageable (51% vs. 35%). [Source: AARP Financial Security Trends Survey: January 2023]

Social Security

Social Security is a bipartisan issue.

• A strong majority (96%) of adults age 18-plus say that Social Security is an important program compared to other government programs. This includes 99% of Democrats, 93% of Republicans, and 92% of Independents. [Source: Social Security Opinions and Attitudes on Its 85th Anniversary]
• In fact, more than two thirds (68%) of adults age 18-plus indicate it is one of the most important programs. [Source: Social Security Opinions and Attitudes on Its 85th Anniversary]

Americans rely or will rely heavily on Social Security for retirement income.

• About two in five Americans (39%) say they rely or will rely on Social Security for a substantial amount of their retirement income, and more than four in five (82%) will do so for at least some of their retirement income. When identifying the source they will rely on most, Social Security (39%) was the most common response. [Source: Social Security Opinions and Attitudes on Its 85th Anniversary]
• Social Security is or will be relied upon by vast majorities of Republicans, Independents, and Democrats alike. This is true not only when they consider how much they will rely on it (Republicans: 34% rely substantially and 81% rely at least somewhat; Democrats: 38% rely substantially and 80% rely at least somewhat; Independents 36% rely substantially and 78% rely at least somewhat) but also when considering sources that will contribute to retirement income the most. [Source: Social Security Opinions and Attitudes on Its 85th Anniversary]

Most Americans believe the average monthly Social Security retirement benefit is too low.

• In 2020, two-thirds of Americans believed the average monthly Social Security retirement benefit of $1,503 per month was too low. This included 71% of both Democrats and Independents and 55% of Republicans. [Source: Social Security Opinions and Attitudes on Its 85th Anniversary]
• In 2020, nearly three quarters of adults age 18-plus were concerned that Social Security will not be enough to get by on, including more than two-thirds of Republicans (67%) and more than three-quarters of Democrats (78%). [Source: Social Security Opinions and Attitudes on Its 85th Anniversary]

Americans feel responsible to ensure Social Security is there for everyone and they believe that Social Security makes the lives of retirees better. Sentiment is consistent across political parties.

• Nearly nine in ten adults age 18-plus (89%) believe “It would be unfair to people who are retired or near retirement to make major changes to Social Security that would affect them.”  Democrats (88%), Independents (86%), and Republicans (91%) agree. [Source: Social Security Opinions and Attitudes on Its 85th Anniversary]
• The vast majority (88%) believe “Social Security provides financial security for all Americans; without it, the people who count on it most would really suffer” — including 89% of Democrats, 86% of Independents, and 84% of Republicans. The same amount (88%) of adults age 18-plus believe “For many older Americans, Social Security makes it possible for them to remain independent and not have to depend on their children or family,” including 87% of Democrats, 89% of Independents, and 86% of Republicans [Source: Social Security Opinions and Attitudes on Its 85th Anniversary]
• Over eight in ten (83%) believe “Everyone who pays into Social Security should receive it no matter what other income they have.” This feeling is shared by Democrats (81%), Independents (87%), and Republicans (86%). [Source: Social Security Opinions and Attitudes on Its 85th Anniversary]

Older adults are concerned about the impact of inflation on Social Security retirement benefits.

• Ninety percent of people age 50 and older who get Social Security retirement benefits now or will in the future say they are worried that their retirement benefits may not keep up with inflation. Among future beneficiaries, 40% worry a lot and 32% worry somewhat, according to the national poll. As for current beneficiaries, 34% say they worry a lot and 27% say they worry somewhat. [Source: 50-Plus Are Concerned About the Impact of Inflation on Social Security Retirement Benefits]

Workforce & Employers

Older workers want more than just a paycheck. They want jobs that are meaningful, too.

• 90% of adults ages 40-plus in the workforce say that a job must offer meaningful work before accepting  it, with 77% noting that their job is "an important part of who I am. [Source: Understanding a Changing Older Workforce]
• However, workers age 40-plus also continue to emphasize financial considerations before accepting a job as well. Must-have job characteristics include job stability (88%), competitive pay (87%), retirement savings (64%), full-time work (62%), pension benefits (60%), and the option to phase into retirement (60%). Other important job requirements include workplace-wellness benefits such as paid leave, health insurance, caregiving leave, flexibility to care for someone, and maternity or paternity leave. [Source: Understanding a Changing Older Workforce]
• In fact, one in five workers age 50-plus (20%) report that they now prioritize their overall well-being over their job, when they did the opposite before the COVID-19 pandemic began.  Workers age 65-plus are more likely than workers ages 50–64 to say more meaningful work is most important (8% vs. 4%) when it comes to overall well-being.  And nearly two in five workers age 65-plus (39%) are more likely than those ages 50–64 (28%) to say that employers should provide meaningful work. [Source: Workplace Wellness Among 50-Plus Workers]

Older workers believe age discrimination persists in the workplace today and the vast majority support strengthening age discrimination laws.

• 64% of adults age 40-plus in the workforce think workers face age discrimination in the workplace, based on what they have seen or experienced. [Source: Understanding a Changing Older Workforce]
• 88% of adults age 40-plus in the workforce think age discrimination has either worsened or stayed the same over the past three years. [Source: Understanding a Changing Older Workforce]
• Regardless of the length of unemployment, 40% of adults age 45-plus who experienced a period of unemployment in the past five years encountered age discrimination during their job search. [Source: 2022 Unemployment: Short-Term and Long-Term]
• Ninety percent of workers age 40-plus support efforts to strengthen the nation’s age discrimination laws. In fact, 88% agree that older Americans should be protected from age discrimination just like they are protected from discrimination on the basis of race, sex, national origin, or religion. And 65% agree that Americans should not be required to provide age-related information (e.g., birth date, graduation date, etc.) on their job application or during the job interview process. [Source: Understanding a Changing Older Workforce]

Many adults expect to work in retirement, primarily for financial reasons.

• Among adults age 30-plus who are not retired, more than half (52%) expect either to work in retirement or never retire. Of those who expect to work in retirement, three in four (74%) cite financial reasons for this expectation, while just one in four (26%) cite nonfinancial reasons. [Source: AARP Financial Security Trends Survey: July 2022]
• Over four in five (84%) report that financially supporting themselves or their family is an important reason in their decision to work during retirement. [Source: Understanding a Changing Older Workforce]

Gig, independent, and freelance work as well as entrepreneurship appeal to some older workers.

• 27% of workers ages 40-plus report being an independent contractor, independent consultant, gig worker, or freelancer. The top reasons for this work are making extra money (89%), flexibility regarding when and how much to work (87%), staying active (85%), being one’s own boss (79%), and an easy way to make money (78%). [Source: Understanding a Changing Older Workforce]
• Want rather than need most often motivated women age 40-plus who launched businesses between January 2020 and July 2022 to become entrepreneurs. About one-quarter (26%) of women said they always wanted to start a business, and 19% said they did it to follow their passion; another 15% were pursuing additional income, and 15% wanted flexible work options. [Source: Women Entrepreneurs: Starting s Business During the COVID-19 Pandemic]
• About two-thirds (69%) of surveyed women age 40-plus who started a business during the pandemic poured their personal savings into their start-up, while significantly smaller percentages of women took out loans at national banks (2%) and regional or community banks (4%). Getting credit and securing funding was hard for 35% of the respondents. In fact, the top challenges women faced in establishing their businesses were finances, cashflow, and attracting customers. [Source: Women Entrepreneurs: Starting a Business During the COVID-19 Pandemic]