“A runaway majority of seniors think the United States is in a retirement savings crisis,” according to the results of the Retirement Savings Crisis Survey from American Advisors Group.

The survey of more than 1,500 participants aged 60 to 75 across the United States found that 90% of the respondents believe that the country is experiencing a retirement savings crisis. Inflation and economic concerns have caused many adults in this age group to cut back on extra expenses such as dining out, travel and entertainment costs, fearful that they could outlive their savings.

By the numbers:

  • 89% affirmed their believe that a retirement savings crisis exists;
  • 43% rated the condition of their retirement savings as fair or poor;
  • 47% said that they are finding it difficult to save for retirement;
  • 44% said that they believe that they have not saved enough to retire comfortably;
  • 57% said that they are only somewhat optimistic or not optimistic at all; that their level of savings will last through retirement;
  • Almost 40% said they are worried about making ends meet;
  • Almost 60% said they are cutting back on nonessentials to save money.

“The retirement savings crisis is a real thing. Our data highlights the severity of the crisis and the actions seniors are taking to make ends meet,” Chris Moschner, chief marketing officer American Advisors Group, said in a statement. 

Moschner suggested that a reverse mortgage is one option for older adults during strained economic times, “to generate increased cash flow by unlocking their home equity and easing the pressures on everyday expenses.”

The most common form of reverse mortgage, according to the experts, is the home equity conversion mortgage, the only one insured by the federal government. To date, more than 1.3 million households have used a Federal Housing Administration-insured reverse mortgage to help meet their financial needs.

As the McKnight’s Business Daily previously reported, the Reverse Mortgage Market Index / RiskSpan Reverse Mortgage Market Index reached $11.81 trillion in the third quarter of 2022 — an all-time high since the index was first published in 2000.