Inflation has hit hard for nearly half of older adults

investmentnews.com:

A recent poll by the University of Michigan National Poll on Healthy Aging highlights significant financial stress among older adults, particularly those in poor physical or mental health.

While recent CPI numbers suggest the economy may be turning a corner on inflation, the research found the financial burden remains heavy, especially for women and those aged 50 to 64.

The survey research, which polled more than 3,000 adults aged 50 to 101 years old, found 88 percent of older adults felt the effects of inflation over the past year, including 47 percent who reported a significant impact.

Fifty-two percent said they had to reduce everyday expenses. Those aged 50 to 64 were notably more affected, with 58 percent cutting back on spending compared to 45 percent of those aged 65 and older.

Moreover, the poll indicates that those in fair or poor health are significantly more likely to report financial stress. Among respondents, 69 percent of those in poor physical health and 76 percent in poor mental health reduced spending. Lower-income individuals (60 percent), Black (58 percent), and Hispanic (60 percent) respondents also reported higher rates of financial cutbacks.

“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,” Dr. Helen Levy, a health economist at the University of Michigan’s Institute for Social Research, said in a statement.

Financial strain is also impacting healthcare decisions among older adults. Sixteen percent reported difficulties in paying for health-related costs, or delayed or avoided healthcare due to expenses.

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