Old, but not forgotten.
Contrary to much of the analysis surrounding younger baby boomer retirees, a new study from the Society of Actuaries takes a look at the experiences of those that are older, “and provides insight into retirees’ financial picture as they approach mortality.”
The SOA notes this older-retiree age group is “increasingly important given that consumers are living longer and need to prepare for a long retirement (the average life expectancy is 85.6 for males and 87.6 for females).”
Key insights from the study of those age 85 and older find the following:
Financial Security
Fully 78 percent of respondents say they are at least somewhat secure in their finances, with 33 percent reporting they are very secure.
However, in comparison, a previous SOA survey of consumers ages 45 to 80 identified a significant increase in the level of concern for finances both prior to and during retirement.
Consumers age 85-plus have a shorter time horizon than earlier stages of retirement, which is why longevity may not be a big factor in their finances.
Retirement Income
Almost all respondents (96 percent) receive social security and about half (53 percent) receive a pension.
Financial Shocks
Those 85 and over do not often report that expenses such as increased utility bills (23 percent), home repairs (13 percent), medical expenses (19 percent), car repairs (5 percent), or dental bills (13 percent) have a major impact on their finances.
In comparison, 61 percent of pre-retirees and 47 percent of retirees feel unprepared for expenses in retirement that could deplete their assets, based on the previous SOA survey of consumers ages 45 to 80.
Housing
A majority (68 percent) own their home free and clear, and about two-thirds (66 percent) live in their home alone.
Additionally, one in five (18 percent) report living in some type of continuing care community or one that provides activities and meals.
Family Support
As for financial aid, 86 percent of respondents report receiving no support from family.
However, 32 percent report receiving support with physical activities such as transportation, meals or household chores.