AARP Hearing Center
A recent AARP survey of Illinois residents reveals stress around inflation and a need for more financial education to help consumers manage their money.
The survey of more than 1,200 Illinois adults indicates an even split between those who feel financially secure and those who do not. Illinoisans who have emergency or retirement savings and manageable debt levels are more likely to feel positive about their financial situation than those who don't. Financial security also increases with income and age.
Nearly two-thirds (64%) of respondents say saving money is difficult.
While 67% of Illinois adults report having a savings account and 63% have an emergency fund, one-third are not sure they could cover an unexpected expense of $1,500, and nearly half aren’t confident they could cover an unexpected expense of $2,500.
Most working Illinoisans (94%) have access to a retirement savings account from their employer, such as a traditional pension or defined contribution plan (401k), yet 33% of employees don’t contribute.
Not surprisingly, 60% of adult Illinoisans are anxious about having enough money to live comfortably in retirement, including 64% of workers and 42% retirees.
Why don’t more workers sock away money for retirement? Respondents cite everyday expenses (69%), housing costs (37%), and debt payments (31%) as barriers, according to the survey.
To manage tight finances, 63% of Illinois adults eat out less, 45% buy fewer clothes, 36% spend less on groceries, 29% cancel vacations, and 10% put off or postpone doctor appointments or cut back on prescription medications.
Most Illinoisans (77%) are carrying debt: 39% have a credit card balance and 37% a home mortgage. About one-third (35%) say the amount is unmanageable, the survey reveals. Paying off debt is the highest priority for 31% of respondents, followed by increasing income (17%), and building up a retirement nest egg (16%).
Although tracking spending and saving is a good path to financial stability, 47% of Illinois adults say they do not use a budget. Another 22% have not monitored their credit score in the past year.
These results suggest consumers could benefit from resources (both private and public) that would help them manage their money and get on solid financial footing.
Methodology
This information was gathered from a March 2024 survey of 1,249 Illinois residents age 18+ by NORC at the University of Chicago. The study included oversamples of 378 Black/African American and 302 Hispanic/Latino adults. The data were weighted by age, race/Hispanic ethnicity, education, and gender.
For more information, please contact Jennifer Sauer at jsauer@aarp.org. For media inquiries, please contact External Relations at media@aarp.org.
MORE FROM AARP
Does Saving for Emergencies Improve Productivity at Work?
This report uses data of the Understanding America Study (UAS), which explores the relationship between emergency savings–related behavior and workplace outcomes, to examine how financial insecurity may be reduced and workplace outcomes may be improved by helping workers to save for unexpected expenses.
