Financial concerns are mounting for seniors, according to a GreenPath Debt Solutions survey. Recently released data from GreenPath interviewing 57,000 seniors ages 55 and older, shows 38% of respondents say “reduced income” is their main source of financial hardship. Another 29% say “no financial plan” is their leading hardship, and for 12%, medical issues are their main concern.
“Reduced income is a reality for seniors in our economy,” said Dorothy Barrick, GreenPath group manager and counselor. “Many people had a lot of their retirement investments wiped out during the recent economic downturn and are realizing now that their income has been greatly affected.”
Many seniors are having to work part time to help with day-to-day expenses as their investments begin to regain value, Barrick said. Some seniors have found they have had to spend more during the recession to support their lifestyle, sometimes leading to credit card debt and further exacerbating the financial situation.
Further adding to the situation, “A senior typically has a harder time finding a second job or a better paying primary job,” she said. “They also often find themselves in a position where there income is fixed at yesterday’s wages and their expenses are growing at the rate of today’s inflation.”
GreenPath recommended that seniors reach out early to seek help before problems occur. Several counseling providers offer free financial counseling, including the National Counseling on Aging, which just announced it will be waiving its fees for reverse mortgage counseling.
Visit GreenPath.com for more information.
Written by Elizabeth Ecker