More retirees are facing financial difficulties, with almost 1 in 3 spending more than they can afford, according to a survey released by the Employee Benefit Research Institute.
Exactly 31% of American retirees between the ages of 62 and 75 report spending “much higher” or “a little higher” than they can afford, up from 27% in 2022 and 17% in 2020.
Half said they saved less than what was needed for retirement, according to the survey released Nov. 7.
Fewer report having three months of emergency savings. In 2024, 59% of retirees had three months of emergency savings, down from 69% in 2022.
More retirees are also reporting outstanding credit card debt. In 2024, almost 7 in 10 retirees (68%) had credit card debt, up from 40% in 2022 and 43% in 2020.
Retirees also rated two well-being measures lower than they did in 2022 and 2020. On a scale of 1 – 10, where 1 is “not at all aligned” and 10 is “very aligned,” retirees rated lifestyle alignment with pre-retirement expectations an average of 5.7, down from 6.4 in 2022 and 6.8 in 2020. Similarly, retirees rated their satisfaction with life in retirement an average of 6.9, down slightly from 7.0 in 2022 and 7.4 in 2020.
Retirees were more likely to have a “savings mindset” than a “spending mindset,” according to the survey.
When asked to rate their consumption philosophy on a scale of 1-10, where 1 is “I have a savings mindset” and 10 is “I have a spending mindset,” more than 1 in 3 (38%) said they have a savings mindset with a rating of 1, 2, or 3. A little over 1 in 10 retirees (11%) said they had a spending mindset with a self-reported rating of 8, 9, or 10.
Retirees reported that individual retirement accounts generated a median of 10% of their income, while 401(k)-like workplace retirement plans generated 15%. One in five retirees (20%) pulled money from their IRAs, and 17% drew income from their workplace plans.
The survey canvassed approximately 3,600 American retirees between the ages of 62 and 75 during the summer.
