Why aren’t older adults in the US equipped to handle financial shocks?
In a recent article from Finextra, Dr. Sarita Mohanty, President and CEO of The SCAN Foundation, discusses the findings from a study by the Aspen Institute, which revealed that nearly half of adults aged 55 and above lack the emergency savings needed to weather financial shocks, leaving them vulnerable to debt and financial instability.
Dr. Mohanty highlights the critical need for tailored financial tools and systemic support to address the unique needs of aging populations, especially those from marginalized communities. “Without the emergency savings needed to weather a financial shock, millions of older adult households lack the protection to stay financially afloat, avoid debt, enjoy a comfortable retirement, support their families, contribute to the U.S. economy, and pass on wealth to the next generation,” she notes.
The article underscores the urgency for fintech innovation and policy changes to bridge this gap and provide equitable financial solutions.