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Chicago, IL, Feb. 12, 2019 (GLOBE NEWSWIRE) -- The Center for Financial Services Innovation (CFSI), the nation’s authority on consumer financial health, together with AARP Foundation, a national leader in the fight to end senior poverty, today announced the release of a new report based on the U.S. Financial Health Pulse report data that shows 83 percent (42 million) of the estimated 50 million low- to moderate-income people over the age of 50 (LMI 50+) living in America are struggling with some or all of the components of their financial lives.
The new report, "Redesigning the Financial Roadmap for LMI 50+ Segment: New Challenges and Opportunities," offers an in-depth look at the increasing financial insecurity of LMI 50+ and the major factors contributing to a more complex financial reality for them than for past generations. The study also found that many in this cohort would like to retire but cannot, while others have been forced to leave the workforce due to illness or a disability.
“These new findings show that a number of external factors are leading the LMI 50+ to redefine how they live and work in the second half of their lives,” said Jennifer Tescher, founder and CEO of CFSI. “The depth and diversity of this group creates an incredible opportunity for groups such as financial services providers, employers, direct service organizations, and tech platforms to innovate on their behalf and address their financial health challenges head on.”
The new report underscores how this second act of life has changed for LMI 50+. The traditional pattern of saving and paying off debt while working in order to retire comfortably has been replaced with far more complex scenarios and, for many, delayed retirement. Uneven income, limited savings, debt burdens, medical shocks, and multi-generational living situations are dramatically influencing the financial health of the LMI 50+.
“For too many low-income older adults, the later years are a source of stress instead of something to look forward to,” said Lisa Marsh Ryerson, president of AARP Foundation. “AARP Foundation works across sectors to develop new, sustainable solutions so vulnerable older adults can achieve a more financially stable future.”
The report identified specific financial challenges facing the LMI 50+:
LMI 50+ Savings Shortfalls & Debt Burden
LMI 50+ Medical Shocks & Multi-generational Living
Opportunity for Innovation
The financial challenges facing so many LMI 50+ individuals represent both an urgent need and a substantial opportunity for financial services providers to offer better products, programs and tools. Innovators and fintechs have been forward-thinking in developing technology solutions for other demographic groups such as millennials, but the LMI 50+ have typically been overlooked or neglected.
According to the report findings, the LMI 50+:
By leveraging the willingness of LMI 50+ to use financial technology to help mitigate some of these challenges, financial services companies, nonprofits and fintechs have an enormous opportunity to create new tools and adapt existing technologies for the LMI 50+ cohort. Focusing innovations in these specific areas could lead to better navigation of tight budgets, savings buildup, and the management of everyday finances in order to accommodate planning for long-term goals.
The LMI 50+ report used data from the CFSI’s inaugural U.S. Financial Health Pulse survey which was fielded between April and July 2018. In addition to the survey data, CFSI incorporated focus group research to learn directly from members of the LMI 50+ segment. Insights from the focus groups were used to create personas to bring the report findings to life.
The Center for Financial Services Innovation (CFSI) is the nation’s authority on consumer financial health. CFSI leads a network of financial services innovators committed to building a more robust financial services marketplace with higher quality products and services, specifically for those who are struggling. Through its Compass Principles and a lineup of proprietary research, insights, and events, CFSI informs, advises, and connects members of its network to seed the innovation that will transform the financial services landscape. For more on CFSI, go to www.cfsinnovation.org and follow us on Twitter at @CFSInnovation.
About AARP Foundation
AARP Foundation works to end senior poverty by helping vulnerable older adults build economic opportunity and social connectedness. As AARP's charitable affiliate, we serve AARP members and nonmembers alike. Bolstered by vigorous legal advocacy, we spark bold, innovative solutions that foster resilience, strengthen communities and restore hope.
Naomi Adams Bata Center for Financial Services Innovation 312.881.5847 firstname.lastname@example.org Stephanie Hicks Cosmo PR 805.295.9455 email@example.com