Financially Steady Today but Concerned for Tomorrow: The Financial Reality of Older Workers

Most workers 50 and older describe their current financial situation positively, but AARP research finds that financial stability does not necessarily mean financial resilience. Rising living costs, debt, health care expenses, and concerns about retirement are putting pressure on many older workers, even among those who feel financially stable today.

Financial strain is growing despite signs of stability

In 2026, 59% of workers age 50-plus describe their financial situation as good or excellent. At the same time, 41% rate their finances as only fair or poor, up 6 percentage points from 2022. Among workers whose finances worsened in the past year, 63% cite increased household expenses as a reason, while 35% point to growing household debt.

There are also signs of optimism. The share expecting their financial situation to improve over the next 12 months rose from 33% in 2022 to 39% in 2026.

Unexpected expenses and debt challenge financial resilience

Even workers who view their current finances positively have concerns about what lies ahead. Nearly 6 in 10 (59%) are very or somewhat concerned about large, unexpected expenses, while 51% worry about having sufficient resources to cover health care costs or health insurance. More than half (54%) are concerned about protecting themselves from financial fraud.

Debt adds another layer of pressure. Eight in 10 workers age 50-plus carry some form of debt from month to month. Among those carrying debt, 41% say they have somewhat more or far more debt than they can comfortably manage.

Retirement security remains a major concern

Nearly 7 in 10 (69%) older workers are worried about having enough money to remain financially secure throughout retirement. While many have contributed to retirement accounts during their careers, only about half (47%) of nonretired workers age 50-plus are currently making regular contributions to a workplace retirement savings plan.

For many, competing financial demands make saving difficult. More than half (56%) cite everyday living expenses as a barrier to retirement saving, while housing costs, debt, unexpected emergencies, and health care expenses also stand in the way.

The findings point to a nuanced financial picture for older workers: Current stability can coexist with significant vulnerability. Understanding both is important to helping workers withstand financial shocks and strengthen their long-term financial security.

For more information, please contact Rebecca Perron at rperron@aarp.org. For media inquiries, contact External Relations at media@aarp.org.