MINNETONKA, Minn.—Professionals who work with older Americans are sounding the alarm when it comes to seniors’ financial health, according to a new study.
A report from the National Association of Area Agencies on Aging, the National Council on Aging (NCOA) and UnitedHealthcare indicates that only 3% of professional caregivers say they are very confident seniors will be able to afford their healthcare costs as they age, compared with 43% of older Americans who feel they will be able to manage their own healthcare expenses.
While only 19% of older adults anticipate needing support managing their finances as they age, 86% of professionals see things differently, the study found.
Older adults and professionals agree that saving money (39% and 43%, respectively) and sticking to a budget (43% and 38%) are among top ways to maintain financial fitness. However, professionals and seniors have different perspectives on how finances should be managed.
Professionals are more inclined to anticipate future needs, suggesting that older adults work beyond retirement age (43%) and reduce housing costs (36%) to help manage finances. However, older adults focus more on short-term ways to manage finances by taking advantage of senior discounts (43%) and limiting leisure expenses (36%) as part of their financial-management strategies, the study found.
“As the professionals we surveyed know, we’re living longer lives than our parents and grandparents, which means our retirement income has to stretch further,” said James Firman, president and CEO, NCOA. “We urge older Americans to plan ahead, get educated and access all resources available to them so they can remain economically secure.”