Financial Well-Being

Older American homeowners have a greater degree of financial well-being than those who do not own a home, while lower housing costs are also correlated to more positive financial well-being. This is according to a survey titled “Financial Well-being of Older Americans,” released by the Consumer Financial Protection Bureau (CFPB) Office of Financial Protection for Older Americans. According to the federal agency, the survey aims to provide “detailed information on the financial well-being scores by individual characteristics and issues of interest to people who work with older adults.”

The survey seeks to qualify financial well-being across a range of topics including employment and retirement, family and specific living arrangements, financial knowledge, debt, health-related experiences and housing. In its section dedicated to the topic of housing, the survey details that older homeowners have a greater degree of financial well-being and autonomy compared with their peers who are not homeowners. However, a unifying factor among both renters and homeowners is that having low monthly housing costs is “positively associated with financial well-being.”

Financial well-being is also higher among older adults who express a high level of satisfaction with their housing situation and/or community compared with those who are less satisfied. 

Source: Reverse Mortgage Daily