Although the inauguration is now behind us, debate continues about what influenced voters in November. A recent survey of older adults mirrors many exit polls: retirees and pre-retirees are growing less optimistic about the economy and their personal finances than in prior years. Those financial concerns can strongly affect decisions about senior living—where to live, when to move, and how to plan for care.
Surveying older adults’ retirement risks and planning
The Society of Actuaries (SOA) Research Institute conducts data-driven research to identify societal challenges and propose strategic solutions. Every two years since 2001, the SOA Research Institute has run its Retirement Risk Survey, an online poll of U.S. pre-retirees and retirees aged 45 to 80 across a range of income levels. The goal is to better understand retirement-related financial concerns and help improve planning strategies for older adults.
The most recent survey, fielded in spring 2024 with 2,012 respondents, is the twelfth iteration of this study. Its findings reveal growing anxiety about financial security in retirement. The full 2024 report will be released in the coming months; prior survey results provide context for emerging trends.
Worries about money and the unexpected
Compared with 2021, respondents in 2024 feel worse off economically. Many are more aware of the need to prepare for unexpected events, yet retirement savings and investments are struggling to keep pace with inflation and rising costs. That gap threatens retirees’ ability to maintain their standard of living and to cover long-term care expenses.
Key retirement-related financial worries identified by the survey include the following.
Will my retirement income be enough?
Concerns about maintaining financial security in retirement have increased. A major worry is that savings and investments are not keeping up with inflation: 78% of pre-retirees and 58% of retirees named this among their top concerns.
What about unexpected financial hits?
Unforeseen expenses affect everyone, but a substantial share of older adults has experienced severe financial loss. Twenty percent of retirees and 35% of pre-retirees reported a financial shock costing more than 25% of their assets. About one in five pre-retirees have run out of assets, had to downsize because of financial strain, or fallen victim to financial fraud.
How do I cope — emotionally and financially — with caregiving responsibilities?
Reflecting the nation’s caregiving pressures, 13% of pre-retirees (both men and women) report currently providing care for someone other than a minor child—such as an aging parent or adult relative. Among retirees, caregiving rates are lower: 6% of men and 9% of women. Emotional or physical strain is a top impact: 36% of male pre-retirees, 26% of female pre-retirees, and 35% of female retirees cited this. Male retirees most commonly identified long-term care planning as their main caregiving challenge.
What will I do if a loved one has a health crisis?
Fewer than 10% of respondents currently provide significant financial support to family members, nor do many expect to receive financial help from loved ones. Still, more than a third of pre-retirees (38%) and over a quarter of retirees (27%) feel unprepared to handle a family medical emergency.
How can my retirement savings keep up with inflation?
Rising everyday expenses are another major worry. Over half of pre-retirees (51%) and 35% of retirees report higher costs for food and general living. Increased utility bills affect 45% of pre-retirees and 29% of retirees. Consequently, 44% of pre-retirees and 27% of retirees have already made lifestyle adjustments. These pressures are prompting many pre-retirees—especially those earning under $100,000 annually—to alter their savings strategies.
Are retirement planning technology tools safe to use?
Online banking is the most commonly used retirement planning tool: 62% of respondents say they often use their financial institution’s online services. Yet many older adults remain hesitant about newer automated planning tools due to concerns about cybersecurity, online fraud, and scams.
Retirement-related worries around money weigh on senior living decisions
The SOA’s biannual survey shows that financial worries shape many senior living choices. Fear of insufficient retirement income or savings—and the possibility of unexpected medical or long-term care costs—often pushes people to seek perceived lower-cost living arrangements, such as:
- Remaining in their current home
- Downsizing to a smaller home
- Relocating to a lower-cost area
- Choosing a 55+ community that offers independent living only, rather than a community with on-site care services such as a continuing care retirement community (CCRC)
These options can seem financially prudent but may have hidden costs or future consequences that affect well-being and care access.
The monetary and unquantifiable costs of caregiving
Many choose living arrangements to reduce financial strain and protect savings. Yet some cost-saving choices can backfire. Staying in place or downsizing may appear economical, but homes still require maintenance that can become expensive and physically demanding with age.
If care becomes necessary, costs can escalate. Nearly 70% of people turning 65 today will need some long-term care services in later years. Paid in-home care is expensive: full-time in-home care can cost thousands per month, and those costs rise with time. Family caregiving may reduce out-of-pocket spending, but it carries both tangible and intangible costs: home modifications and equipment are hard costs, while lost wages, reduced benefits, emotional stress, and physical strain are significant unquantifiable burdens.
Hedging against the future’s unknown expenses
Feeling anxious about financial unknowns is normal. There are strategies to prepare: some people consider long-term care insurance (LTCI) to help cover future care costs—often most affordable when purchased in the mid-50s to early 60s. Inflation and rising daily costs are also motivating older adults to choose retirement communities that bundle utilities, meals, and services into a predictable monthly fee.
Others opt for retirement communities with on-site care, such as CCRCs (life plan communities). While CCRCs can require entry fees and have varied pricing based on location, amenities, and contract type, they may offer long-term peace of mind and, depending on circumstances and contracts, potential cost savings by ensuring access to care without destabilizing personal finances.