Building Financial Resilience Later in Life

Money is a common source of stress for many older adults, particularly those approaching

retirement. With ongoing economic uncertainty, rising scam incidents, and shifting employment opportunities, many individuals are increasingly concerned about their financial security.

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At AARP, advocacy efforts focus on five key areas of financial security: Social Security, savings, employment, assistance for people with low incomes, and budget and taxation. Together, these areas form the foundation for building stable and sustainable financial futures.

AARP's Financial Trend Survey shows that nearly 90% of adults age 45 and older believe it is crucial to save enough for retirement. Yet 66% of adults age 30 and older report worrying about their current financial situation and their ability to save for the future. This gap highlights a central challenge. While many understand the importance of saving, far fewer feel able to do so consistently.

Rising costs make that challenge even more difficult. Many older adults simply do not have the means to set money aside. Recent studies show that 60% of adults cite everyday expenses as a barrier to building emergency savings, while 54% say the cost of daily necessities limits their ability to grow retirement savings.

So how can people begin building savings and strengthening financial resilience later in life? Carly Roszkowski, Vice President of Financial Resilience at AARP, says it starts with understanding that resilience is not just about accumulated savings. “Financial resilience isn’t just about how much someone has saved,” she explains. “It’s about adaptability with income and spending and making competent decisions in a system that puts stress on individuals.”

That pressure is particularly visible in today’s workforce. Although the labor market has remained relatively strong, unemployment has begun to rise, and both employers and workers are acting cautiously. Many workers are staying in their current roles, slowing hiring across industries. For older workers, the impact is significant. Research shows it can take up to three times longer for someone over 50 to find a new job, and only a small share secure positions with equal or higher pay. Misconceptions about older workers, especially related to technology, continue despite evidence that they are willing and able to learn.

Despite these challenges, Roszkowski emphasizes that progress is possible. “Start with a clear picture and take one step at a time.” Small, consistent actions can make a meaningful difference, helping build confidence and long-term security. AARP offers programs to help, including a Work & Jobs Hub, Job Search Toolkit and Navigator, and a co-branded Job Board with Indeed, which offers courses in digital and professional skills.