Nearly One-Third of Seniors with Financial Troubles in 2020 According to New AAG Survey

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2020 was difficult for everyone, especially the elderly. Lockdowns, virtual communication, and a fluctuating economy forced seniors to change their daily life and re-evaluate their future. To understand the impact that 2020 had on seniors’ finances and home life, American Advisors Group (AAG), the nation’s leader in home equity solutions, conducted the Post-2020 Retirement Survey with over 1,500 participants age 60-75.

“Senior citizens make up our entire customer base, so it was important for us to understand how the events of last year affected their well-being,” said AAG Chief Marketing Officer Martin Lenoir. “This study showed us that not only are seniors still recovering from last year, but that they have a different outlook on the importance of their home. This may be the perfect time for them to bridge the gap and utilize their home equity to regain the peace of mind they had in years past.”

How 2020 Impacted American Seniors:

  • For many seniors, 2020 affected their future as much as their daily life. Nearly one-third of seniors (30%) stated that the events of 2020 had a negative impact on their retirement plans.
  • Last year forced many seniors to draw additional income to fund their daily lives. More than one in five seniors (21%) said that the events of 2020 caused them to withdraw additional funds from one or more of their retirement accounts.
  • The COVID-19 pandemic forced all of America’s seniors to remain home for the majority of the year, causing many to feel increasingly safer at home. More than one out of every four seniors (28%) said they felt safer at home in 2020 than years prior.
  •  With the increased time spent at home, most seniors now have no desire to move. Over half of American seniors (55%) said they plan on living in their current home forever.
  • Despite the negative effects that 2020 had on seniors’ finances and the urge to remain in their home, seniors did not recognize using home equity as a top financial tool. Seniors ranked accessing their home equity fifth out of seven possible options to improve their finances.

AAG’s Post-2020 Retirement Survey was conducted on January 27, 2021, and included 1,521 participants. Responses include numerous formats, including yes-and-no answers, ranking preferences, and multiple-choice replies. The survey was conducted on a digital platform so that participants from all regions of the United States could answer from the safety of their homes. All participants were selected randomly with age and homeownership being the only qualifying factors.