Delaware is often seen as a top retirement destination, ranking second in Bankrate’s 2023 list of best states to retire. While the cost of living can be high for retirees, factors such as low property taxes, combined state and local sales tax exemptions and affordable homeowners insurance help offset these expenses.
However, a report by Badcredit.org, a financial education website, uncovers a troubling trend: 59% of retirees who stopped working at or before the age of 65 believe they do not have enough funds for retirement. Despite investing in common savings strategies like using savings accounts, 401(k) plans, pensions, IRAs and private investments, many seniors still struggle financially.
A survey by Badcredit.org of over 800 Americans aged 65 and above found that 95% rely heavily on Social Security benefits in retirement. Another 78% of respondents said they were retired, but more than half admitted they didn’t have enough money to support their lifestyle. Those still working expect to retire around age 73.
Many seniors reported having to cut back on leisure, dining and entertainment activities and postpone making major purchases due to financial constraints.
As retirement savings fall short, seniors work side hustles
The Badcredit.org survey found that seniors have saved enough money to live until an average age of 87, but with longer life expectancies, nearly half say they haven’t put away enough money to last the rest of their lives.
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Unexpected emergencies and associated costs are the top financial struggles for 63% of retirees aged 65 and older. Travel is the second biggest challenge, with 60% of those surveyed saying they can’t afford it. Additionally, 37% report that everyday living expenses, such as basic home repairs and maintaining their lifestyle, aren’t affordable in 2024. The survey also said:
- More than 1 in 3 (35%) retirees said they don’t feel financially stable.
- 35% have struggled to make ends meet after they stopped working.
- 1 in 4 retirees said they had to return to work because they lacked sufficient resources.
To combat these challenges, more retirees are increasingly engaging in side hustles, or part-time work, to supplement their income. According to a study by MarketBeat.com, the retiree side hustle economy is flourishing.
Surveying 3,000 people and analyzing public data, the study found that retirees with side hustles earn an average of $379 per month. In Delaware, seniors with a side hustle are making $400 per month on average.
You can contact reporter Anitra Johnson at ajohnson@delawareonline.com.
