Financial stress persists even though rising inflation rates have eased, and the group feeling the pinch most acutely is in its peak earning years, a new poll shows.

“Our biggest surprise from this poll is that the age group most likely to be affected or stressed by pressures on personal finances is not the group whose incomes are more likely to be ‘fixed’ by reliance on Social Security or retirement savings,” said health economist Helen Levy, of the Institute for Social Research at the University of Michigan.

Women and respondents between the ages of 50 and 64 were more likely than men or people over 65 to say they stress out about their budget, the new University of Michigan National Poll on Healthy Aging found. 

Also rattled by their finances: people in their 50s and beyond who said they are in fair or poor health.

In all, 47% of respondents in that group said they’ve been hard-hit by inflation in the past year, and 52% have cut back on everyday expenses.

That included 58% of the younger group — at a time when people typically have their maximum earnings — versus 45% of seniors.

About 6 of 10 respondents who were Black, Hispanic or in lower income brackets said they had cut spending, as did 69% of those who said their physical health was fair or poor and 76% of those who said the same of their mental health.

Among adults over 50, 16% said they have postponed health care because of cost.

“We have known for years that when people cut back on needed health spending because of competing demands on their finances there can be negative health effects — for instance, they are often less likely to receive appropriate care for a chronic condition such as diabetes,” said poll director Dr. Jeffrey Kullgren, who urged anyone facing financial stress to let their health care provider know.

The poll also asked about the emotional cost of financial problems. Sixteen percent of respondents said it causes them a lot of stress and 37% said it causes them some stress.

Of respondents who are caregivers, 14% said they had significant stress due to the financial demands of caregiving and 27% feel some stress as a result of these demands.

“Despite the slowing on inflation, higher costs over the past couple of years have had lingering consequences for debt and savings,” said Indira Venkat, senior vice president of research for poll co-sponsor AARP. “Every adult in America deserves to retire with dignity and financial security, yet recent AARP research shows that among adults age 50+ who are not yet retired, over 1 in 4 today never expect to retire and 1 in 5 have no retirement savings at all.”

Poll leaders urged anyone who is feeling financially stressed to check out what local, state and federal aid programs they might qualify for. 

The findings are based on a nationwide survey of 3,379 adults from 50 to 101 years of age. It was conducted online and by phone in February and March.

More information

There is information about financial assistance programs at the U.S. General Services Administration. 

SOURCE: University of Michigan/Michigan Medicine, news release, July 9, 2024

Source: HealthDay

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