AARP Hearing Center
Costs Are Climbing — and Older Adults With Low Income Are Feeling It
People ages 50 to 64 are being hit the hardest, a new AARP Foundation study shows
Lower-income adults in their 50s and early 60s are facing tough choices as everyday costs rise, according to AARP Foundation research.
Getty Images/iStockphoto
Key takeaways
- Costs are up: 75 percent of adults 50-plus with low income said household expenses increased in the past three months, up from 64 percent a quarter earlier.
- Affordability is the top concern, with 88 percent of older adults reporting they’re worried about rising prices.
- By nearly every measure, those ages 50 to 64 are struggling more than those 65 and older.
Rising costs and financial pressures are squeezing adults 50-plus with low income, new AARP Foundation research shows. Seventy-five percent of respondents said that everyday household expenses increased in the past three months, up sharply from 64 percent a quarter earlier.
In the inaugural AARP Foundation Economic Security Monitor — a nationally representative survey of U.S. adults 50 and older with low income — everyday costs ranked as the top concern. Nearly 9 in 10 said they were worried about rising prices.
More Ways to Benefit
- Related Benefit 1
- Related Benefit 2
- Related Benefit 3
- Related Benefit 4
- Related Benefit 5
But that pressure is not being felt equally. The Economic Security Monitor highlights a clear pattern: Those in their 50s and early 60s are experiencing greater strain.
Many in this group are navigating a particularly difficult time in life. Most are too young to qualify for Social Security and Medicare. They’re also facing an increasingly uncertain labor market and grappling with rising costs on everything from groceries to utilities.
“Hardship didn’t disappear once people reached Social Security and Medicare eligibility. But it did ease,” says Claire Casey, president of AARP Foundation. “The crisis isn’t old age. It’s the years leading up to it.”
The gap is clear
The report, released June 25, defines low income as household income at or below 250 percent of the federal poverty level — about $39,125 for one person and $52,875 for a two-person household in 2025.
Two-thirds of adults ages 50 to 64 with low income said they were finding it difficult to get by, compared with 47 percent of those 65 and older. About half said they had trouble paying a bill or expense in the past three months, compared with 30 percent of those 65 and older.
The picture is similar when it comes to savings. About 40 percent said they could not cover a $100 emergency expense from their savings — twice the share of those 65 and older.
Food is one of the clearest signs of strain
The report found that 59 percent of adults ages 50 to 64 with low income worried they would run out of food before they had money to buy more. Among adults 65 and older, 36 percent reported that concern.
Worse yet, nearly half of adults 50 to 64 said they did run out of food, compared with 25 percent of those 65 and older. As one survey respondent reported, “With all my living expenses having increased this year, there is nothing left for food.”
Both food insecurity measures are important to track, says Alex van Kemenade, AARP Foundation’s senior vice president of Impact Analytics, who directed the study. “Food hardship shows up in two ways: anxiety and actual deprivation,” he says. “The ‘worried food would run out’ measure captures financial concern. The ‘food actually ran out’ measure is a more concrete deprivation measure.”
Financial stress can take a significant toll. “The worry about running out of food or not being able to pay the utility bill takes time and mental energy away from other important tasks, like looking for a better job,” van Kemenade says.
Surging living expenses add to the pressure for everyone
Increasing everyday costs were the prevailing concern for all respondents.
Among other leading financial concerns, 80 percent said they were worried about not having enough retirement savings; 72 percent cited medical debt or affording medical care; 56 percent worried about losing government or essential public benefits; and 54 percent cited housing costs or availability.
For many, these financial pressures are forcing trade-offs between basic needs when bills come due, often deepening financial instability. Those struggling to make ends meet reported cutting back in other areas to pay bills, making partial payments, turning to credit cards or borrowing from friends and family.
One respondent described the trade-off this way: “I bought less food and used that money to pay the increase in my rent.”
Work is not enough for many people
Among those employed, nearly two-thirds said they were finding it difficult to get by. About half reported that they were worried food would run out or that they had trouble paying a bill or expense.
“People are having to work longer than previous generations, but they’re doing so in a labor market that is less predictable and less secure,” Casey says. “When the fastest-growing jobs, like home health aides and gig driving, don’t provide the wages or benefits people need to get by today, that also has real implications for their ability to retire securely in the future.”
Public benefits help, but concerns about accessibility are widespread
Nearly half of adults surveyed reported receiving at least one public benefit, including nutrition assistance, Medicaid or unemployment insurance. Most respondents said losing these programs is a financial worry.
Their concerns come as eligibility and renewal requirements are changing across multiple benefits programs, creating uncertainty for the people who rely on them.
“Public benefits, such as SNAP or Medicaid, are a critical part of the financial foundation for many older adults with low income,” Casey says. “The fear of losing them adds another layer of anxiety on top of an increasingly fragile financial reality.”
AARP Membership
Join AARP for only $15 per year with automatic renewal. Get instant access to members-only products and hundreds of benefits, a free second membership, and a subscription to AARP The Magazine.
More From AARP
What to Ask Yourself When the Kids Ask for Money
Answering these two key questions can help you decide whether to help, and how
These Money-Saving Hacks Don’t Work
Some cost-cutting strategies aren’t worth the hype
How to Find a Credit Counselor You Can Trust
If you’re in a mire of debt, one of these professionals may be able to help