Nearly Half of American Seniors Manage Their Money Entirely on Their Own
Nearly half (47%) of Americans over the age of 65 manage their finances entirely on their own, according to the Plan for 100 Elder Financial Abuse Survey from AIG Life & Retirement. Furthermore, only 25% will discuss their finances with a trusted friend or family member.
While there is merit in financial independence, it is not always ideal for seniors. Financial abuse affects 1 in 20 seniors each year, ranging from online romance scams to phone-based donation scams to mail-based invoice scams.
Thankfully, seniors appear to know how to safeguard their money. An impressive 92% know not to respond to communications urgently requesting personal information. A similarly high 89% know not to click on links from unknown email senders, and 60% say they will only provide financial information when they initiate a phone call.
Seniors are particularly savvy about credit as well: 65% of seniors say they review their credit reports, compared to 57% of respondents overall. This may be one of the reasons why Baby Boomers (age 55-75) and the Silent Generation (age 76-91) have the highest average credit scores of all generations.
In terms of combating financial abuse, 92% of respondents say that financial institutions should have safeguards specifically for seniors. Americans also believe the government should raise awareness about the issue (77%), and that family members have a responsibility to protect their loved ones (46%).