Inflation has hit hard for nearly half of older adults

A recent poll by the University of Michigan National Poll on Healthy Aging highlights significant financial stress among older adults, particularly those in poor physical or mental health.

While recent CPI numbers suggest the economy may be turning a corner on inflation, the research found the financial burden remains heavy, especially for women and those aged 50 to 64.

The survey research, which polled more than 3,000 adults aged 50 to 101 years old, found 88 percent of older adults felt the effects of inflation over the past year, including 47 percent who reported a significant impact.

Fifty-two percent said they had to reduce everyday expenses. Those aged 50 to 64 were notably more affected, with 58 percent cutting back on spending compared to 45 percent of those aged 65 and older.

Moreover, the poll indicates that those in fair or poor health are significantly more likely to report financial stress. Among respondents, 69 percent of those in poor physical health and 76 percent in poor mental health reduced spending. Lower-income individuals (60 percent), Black (58 percent), and Hispanic (60 percent) respondents also reported higher rates of financial cutbacks.

“Our biggest surprise from this poll is that the age group most likely to be affected or stressed by pressures on personal finances is not the group whose incomes are more likely to be ‘fixed’ by reliance on Social Security or retirement savings,” Dr. Helen Levy, a health economist at the University of Michigan's Institute for Social Research, said in a statement.

Financial strain is also impacting healthcare decisions among older adults. Sixteen percent reported difficulties in paying for health-related costs, or delayed or avoided healthcare due to expenses.

Jeffrey Kullgren, director of the poll, underscored the impact of financial strain on people’s ability to invest in improving or managing their health.

“We have known for years that when people cut back on needed health spending because of competing demands on their finances, there can be negative health effects—for instance, they are often less likely to receive appropriate care for a chronic condition such as diabetes.”

The poll also highlighted the strain on caregivers, with 14 percent reporting high stress due to the financial demands of caregiving and another 27 percent feeling some stress.

In terms of spending cuts, 38 percent of respondents reported reducing social and recreational expenses, and 28 percent cut back on groceries. Kullgren emphasized the potential health implications of these reductions, noting that decreased social interaction and lower-quality nutrition could adversely affect older adults' health.

Indira Venkat, senior vice president of Research at AARP, which supported the research, said there’s a retirement crisis brewing across the US as higher costs over the past few years have had a domino effect on debt and savings.

“Every adult in America deserves to retire with dignity and financial security, yet recent AARP research shows that among adults age 50+ who are not yet retired, over 1 in 4 today never expect to retire and 1 in 5 adults have no retirement savings at all,” Venkat said.