Fact Sheet
AARP Public Policy Institute
50+ and Worried about Today and Tomorrow:
Older Americans Express Concerns about the State of the
Economy and Their Current and Future Financial Well-being
Sara E. Rix
AARP Public Policy Institute
More than two years after the official end of the recession, Americans aged
50 and older remain deeply concerned about their current and future financial
well-being. Few feel that either the economic situation or job opportunities
have improved over the past year.
Regardless of employment status, most lack confidence in their ability to find
a job anytime soon.
Nearly half anticipate that their standard of living in retirement will be worse
than that of their parents or parents’ generation; even more expect their
children’s retirement standard of living to be worse than theirs.
Few Americans aged 50-plus feel that the
economic situation has improved over the
past year and many remain worried about
their economic security. Nearly half think
their standard of living in retirement will
be worse than their parents and most fear
their children’s retirement prospects will
be worse than theirs.
A survey of Americans 50 and older
conducted by the AARP Public Policy
Institute also shows that nearly two thirds
(63 percent) are worried about having
enough money to afford adequate health
care. Four out of five older Americans
are concerned about another recession,
and nearly three-fourths (72 percent) are
worried about further stock market decline.
Second Survey Wave Shows Little
Improvement
In late August 2011, the AARP Public
Policy Institute surveyed a random
sample of noninstitutionalized men
and women aged 50 and over who had
been part of a sample of 5,027 people
interviewed in October 2010 about
the impact of the recession on their
employment experiences and perceptions
of current and future economic security.1
The original sample (first wave)
consisted of people who were currently
in the labor force (either employed or
unemployed) or who were out of the
labor force but had been in it at some
point during the previous three years.
Both surveys were administered by
Knowledge Networks (KN), an online
survey research firm. KN generated a
probability-based Web panel designed
to be representative of the total U.S.
population. In the follow-up survey
(second wave), 1,304 people aged 50-plus
were interviewed, of whom 67 percent
were working for pay, 16 percent were
not working but were looking for work
(classified as “unemployed”),2 and
18 percent were neither working nor
looking for work (classified as “out of the
labor force”). The samples in the first and
second waves of the survey were thus all
50+ and Worried about Today and Tomorrow
current or recent labor force participants.
Older people who had been out of the
labor force for more than three years as of
October 2010 were excluded from both
waves.
August 2011
Not much has improved in the eyes of
members of the aged 50-plus population
who are working or looking for work, or
who have recently left the labor force.
Nearly three in five (59 percent) said
in August that the overall economic
situation was worse than it was in
October 2010 (figure 1). More than two
in five (43 percent) felt that way about
job opportunities. Fewer than one in ten
saw improvement in job opportunities or
the economic situation.
A report on the first survey was published
in May 2011.3
The following figures highlight topline
findings from the second wave of the
survey, which was undertaken to examine
how the perceptions and concerns of
older workers and jobseekers as well as
those who had recently worked or looked
for work had changed over the course
of almost a year.4 When the decision
was made to do a follow-up survey,
the economic picture appeared to be
brightening. By the time we returned
to the field, however, there were fears
that another recession might be in the
offing; the unemployment rate—while
below what it had been a year ago—was
still above 9 percent; average duration
of unemployment was on the rise; and
the stock market was fluctuating wildly.
Older Americans in August 2011 were
not very optimistic.
Moreover, this segment of the
population was somewhat more
likely to anticipate a worsening of
job opportunities over the next year
than an improvement—27 percent
saying somewhat or much worse vs.
23 percent saying somewhat or much
better (figure 2). More than two in five
(42 percent) contended that things will
remain pretty much the same, at least as
far as job opportunities are concerned.
Confidence in ability to find work is
in short supply—nearly three-fourths
of survey respondents were either not
too confident (36 percent) or not at all
confident (36 percent) that they could
Figure 1
Perceptions of Changes in Job Opportunities and the Economic
Situation Since October 2010
Job opportunities
9%
7%
Improved
Economic situation
43%
Worsened
59%
48%
Stayed about the same
34%
0%
10%
20%
30%
40%
50%
60%
Q2: Thinking about job opportunities where you live, would you say that since October 2010, job opportunities have improved, worsened,
stayed about the same? Base: Total (n = 1,304).
Q5: Since October 2010, would you say that the overall economic situation has improved, worsened, stayed about the same? Base: Total
(n = 1,304).
2
50+ and Worried about Today and Tomorrow
Figure 2
Perceptions of Job Opportunities a Year from Now
Much better
1%
Somewhat better
22%
About the same
42%
Somewhat worse
19%
Much worse
8%
Don't know
8%
0%
10%
20%
30%
40%
50%
Q3. Looking ahead a year from now, do you think job opportunities will be much better, somewhat better, about the same, somewhat
words, much worse, don’t know? Base: Total (n = 1,304).
find a good job with good pay or benefits
in the next six months (figure 3).
Retirement confidence has not
improved since the recession. A
majority (57 percent) of older workers,
jobseekers, and recent labor force
participants reported that they were less
confident than before the recession that
they will have enough money to live
comfortably throughout their retirement
years (figure 5). For only 8 percent had
confidence increased, and then only
somewhat for the most part.
As might be expected, the unemployed—
who presumably have seen firsthand
what the job market is like—lack much
confidence in their chances of finding
a job. The same can be said for those
who are out of the labor force, who may
have had some experience looking for
work before they withdrew. However,
the employed are not much more assured
about job-finding success than their
nonworking counterparts: Only about
one-fourth of aged 50-plus workers were
somewhat or very confident in August
2011 that they could find a job if they
were looking for one (figure 4).
Retirement confidence could be tied
to what one has in the bank—the
greater the balance, the more prepared
one likely feels about retirement. A
perhaps fortunate 15 percent noted that
their savings balances in August 2011
were higher than they were before
the recession started, and for another
Figure 3
Confidence in Ability to Find a Good Job
Very conf ident
5%
Somewhat conf ident
18%
Not too conf ident
36%
Not at all conf ident
36%
Don't know
5%
0%
10%
20%
30%
40%
Q4. Asked of those currently working or out of the labor force: If you were looking for a job right now, how confident are you that you could
find a good job in the next 6 months—a job with good pay and/or benefits? Asked of the unemployed: If you were looking for a job right now,
how confident are you that you can find a good job in the next 6 months—a job with good pay and/or benefits? Base: Total (n = 1,304).
3
50+ and Worried about Today and Tomorrow
Figure 4
Confidence in Ability to Find a Good Job by Employment Status*
Somewhat/very conf ident
Not too/not at all conf ident
26%
Employed
69%
20%
Unemployed
73%
17%
Out of labor f orce
0%
10%
20%
79%
30%
40%
50%
60%
70%
80%
Q4: Asked of those currently working or out of the labor force: If you were looking for a job right now, how confident are you that you could
find a good job in the next 6 months—a job with good pay and/or benefits? Asked of the unemployed: How confident are you that you can
find a good job in the next 6 months—a job with good pay and/or benefits? Base: Total (n = 1,304).
*The employed were significantly more likely (5 percent level) than those out of the labor force to be somewhat or very confident in their
ability to find a good job in the next six months, while those who were out of the labor force were significantly more likely (5 percent level)
than those who were employed to lack confidence in their ability to find a good job in the next six months. The unemployed fell between the
two other groups, but differences were not significant.
Figure 5
Retirement Income Confidence Compared to Before the Recession
Much more conf ident
1%
Somewhat more conf ident
7%
Neither more nor less conf ident
30%
Somewhat less conf ident
31%
Much less conf ident
26%
Don't know/can't say
5%
0%
10%
20%
30%
40%
Q8b. Compared to how you felt before the recession started (in December 2007), are you more or less confident that you will have enough
money to live comfortably throughout your retirement years? Base: Total (n = 1,304).
For the most part, today’s aged 50-plus
population—at least those who are or
recently were in the labor force—are not
expecting a retirement much improved
over that of their parents or their
parents’ generation. About one in four
(26 percent) thought that their standard
of living in retirement will be somewhat
(19 percent) or much (7 percent) better
than that of the previous generation,
while nearly half (47 percent) felt that it
will be somewhat (31 percent) or much
(16 percent) worse (figure 7).
12 percent, savings were where they
were before the recession (figure 6).
However, some of these people may
have had little in the way of savings
four years ago. In fact, 8 percent
actually said that they had no savings
at the start of the recession. Nearly one
in five (18 percent) reported savings
that had not bounced back to where
they had been but were “moving in
the right direction.” More than two in
five (43 percent) experienced a drop in
savings and had not recovered.
4
50+ and Worried about Today and Tomorrow
Figure 6
Savings Balances Compared to Before Recession
Higher than before recession
15%
Where they were before recession
12%
Not where they were but moving in right direction
18%
Declined/have not recovered
43%
Don't know how balances have changed
4%
Not applicable- no savings in 12/07
8%
0%
10%
20%
30%
40%
50%
Q10. Thinking about your savings today compared to the start of the Great Recession in December 2007, would you say: My balances
are higher than before the recession started; My balances are where they were before the recession started; My balances are not back to
where they were before the recession started, but are moving in the right direction; My balances declined and have not recovered; I don’t
know how my balances have changed since December 2007; Not applicable—I had no savings in December 2007. Base: Total (n = 1,304).
Figure 7
Retirement Living Standard Comparisions with Parents'
and Children's Generations
Much better
7%
2%
Somwhat better
Self v. parents
Children v. self
19%
11%
About the same
22%
15%
31%
33%
Somewhat worse
16%
Much worse
5%
Don't know/can't say
0%
24%
15%
10%
20%
30%
40%
Q9. Compared to your parents or people in your parents’ generation, do you think your standard of living in retirement will be much better,
somewhat better, about the same, somewhat worse, or much worse than theirs? Base: Total (n = 1,304);
Q10a. Compared to your standard of living in retirement, now or in the future, do you think that the standard of living in retirement for your
children or young people today will be much better, somewhat better, about the same, somewhat worse, or much worse than yours? Base:
Total (n = 1,304).
Moreover, these respondents think
their children will fare worse than they
will when it comes to retirement. Only
13 percent said they expect an improved
retirement standard of living for their
children or young people today, while
nearly six in ten (57 percent) predicted
that it will be worse.
How Worried Are They?
The following nine charts report on
responses to the question “Thinking
about the next 12 months, how worried
are you about [a particular issue]?”
which was asked of all respondents.
Not surprisingly, older Americans are
worried about a number of economic and
financial issues (figures 8a–8i).
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50+ and Worried about Today and Tomorrow
Figure 8a
Worry about You or Your Spouse Losing a Job
Very worried
10%
Somewhat worried
22%
Not very worried
28%
Not at all worried
17%
Not applicable
23%
0%
10%
20%
30%
40%
50%
40%
50%
Figure 8b
Worry about Rising Interest Rates
Very worried
21%
Somewhat worried
31%
Not very worried
32%
Not at all worried
15%
0%
10%
20%
30%
Figure 8c
Worry about High Inflation
Very worried
33%
Somewhat worried
44%
Not very worried
18%
Not at all worried
5%
0%
10%
20%
6
30%
40%
50%
50+ and Worried about Today and Tomorrow
Figure 8d
Worry about Another Recession
Very worried
31%
Somewhat worried
49%
Not very worried
15%
Not at all worried
5%
0%
10%
20%
30%
40%
50%
Figure 8e
Worry about Further Stock Market Decline
Very worried
28%
Somewhat worried
44%
Not very worried
19%
Not at all worried
8%
0%
10%
20%
30%
40%
50%
Figure 8f
Worry about Rising Taxes
Very worried
36%
Somewhat worried
36%
Not very worried
19%
Not at all worried
8%
0%
10%
20%
7
30%
40%
50%
50+ and Worried about Today and Tomorrow
Figure 8g
Worry about Being Able to Pay Rent/Mortgage
Very worried
11%
Somewhat worried
24%
Not very worried
29%
Not at all worried
20%
Not applicable
16%
0%
10%
20%
30%
40%
50%
Figure 8h
Worry about Having Enough Money for Adequate Health Care
Very worried
26%
Somewhat worried
37%
Not very worried
25%
Not at all worried
12%
0%
10%
20%
30%
40%
50%
Figure 8i
Worry about Ability of Congress and President to Work Together to
Tackle Country's Economic Challenges
Very worried
65%
Somewhat worried
26%
Not very worried
5%
Not at all worried
3%
0%
10%
20%
30%
8
40%
50%
60%
70%
50+ and Worried about Today and Tomorrow
Worry about our government’s ability
to deal with the country’s economic
challenges tops the list of concerns among
the aged 50-plus population—two-thirds
are very worried about this (figure 9).
At some distance are rising taxes, high
inflation, and another recession, with
about one-third saying that they are very
worried about these issues. Job loss
worries were relatively low on the list.
Figure 9
What Those Aged 50+ Are "Very Worried" About
Ability of Congress/President to work together*
65%
Rising taxes
36%
High inf lation
33%
Another recession
31%
Further stock market decline
28%
Enough money for adequate health care
26%
Rising interest rates
21%
Being able to pay rent/mortgage**
13%
You/spouse losing job**
13%
0%
10% 20% 30% 40% 50% 60% 70%
*The complete item, which does not fit on the chart, was “Thinking about the next 12 months, how worried are you about the ability of
Congress and the President to work together to tackle the country’s economic challenges?”
**Excludes from the base of respondents those who said the question was not applicable, so the percentages of those very worried about these
two issues differ from those presented earlier, which are based on the total sample, including those who said the issue was not applicable.
Base: Total (n = 1,304) for all items except ability to pay rent/mortgage (n = 1,075) and you or your spouse losing your job (n = 1,025).
Endnotes
1
The Public Policy Institute is very appreciative of all the advice and assistance provided by Lona ChoiAllum of AARP’s Research and Strategic Analysis over the course of the entire study. She has been an
invaluable member of the project team.
2
The percent unemployed in this Fact Sheet is not comparable to the official unemployment rate. It is simply
the percentage of all persons in the survey who identified themselves as “not currently working but looking
for work.” The survey was restricted to persons aged 50 and over who, as of October 2010, were in the labor
force (employed or unemployed) or had been in it in the previous three years. It excluded the millions of
older Americans who had been out of the labor force for more than three years.
See Sara E. Rix, Recovering from the Great Recession: Long Struggle Ahead for Older Workers, Insight on
the Issues 50 (Washington, DC: AARP, May 2011), available at http://assets.aarp.org/rgcenter/ppi/econ-sec/
insight50_recovering.pdf.
3
4
The text and figures present the responses to all questions in the August 2011 survey except those dealing with
a comparison of the respondent’s financial situation in
August 2011 with that in October 2010: “In October
Fact Sheet 242, November, 2011
2010, you rated your own (your family’s) financial well
being as [excellent, very good, good, fair, poor]. Would
AARP Public Policy Institute
you say that has gotten better, worse, or stayed about
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the same?” Analyzing this question and two follow-up
www.aarp.org/ppi
questions (“What has made your financial situation
[better than it was in October 2010] or [worse than it
202-434-3910, ppi@aarp.org
was in October 2010]”) requires extracting the 2010
© 2011, AARP.
rating from the earlier questionnaire. That will be done
Reprinting with permission only.
in the final report.
9
50+ and Worried about Today and Tomorrow
Appendix
The demographic characteristics of the
follow-up survey sample are as follows.
The total count (1,304) is unweighted.
The percentages are weighted. This is the
case as well for all of the figures above.
Sex
49%
51%
38%
27%
35%
76%
9%
9%
6%
67%
16%
18%
15%
85%
*Employed: working for pay; Unemployed: not working but
looking for work; Out of the labor force: not working for pay and
not looking for paid work right now. Base: Total (n = 1,304);
weighted percentages. Percents may not add up to 100 due to
rounding.
10
Fact Sheet
Male
Female
Education
High school or less
Some college
Bachelor's degree or higher
Race/Ethnicity
White, Non-Hispanic
Black, Non-Hispanic
Hispanic
Other
Current Employment Status*
Employed
Unemployed
Out of the labor force
Change in Employment Status
since Oct. 2010
Yes
No