Financial troubles don’t necessarily disappear with age. In some cases, they may even increase.
Money woes can haunt you until you take active steps to change course so you can increase your financial stability.
Here are some of the warning signs that could indicate you are in financial trouble if you are over the age of 55. If any of the following apply to you, it’s time to take action so you can build wealth instead of wasting it.
If you’re over 50, take advantage of massive discounts and financial resources
Over 50? Join AARP today — because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more.
How to become a member today:
- Go here, select your free gift, and click “Join Today”
- Create your account (important!) by answering a few simple questions
- Start enjoying your discounts and perks!
Important: Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up 25% off your AARP membership, making it just $12 per year with auto-renewal.
You have a net worth of less than $350,000
The median net worth for a household headed by someone between the ages of 55 and 64 is $364,500, according to the Federal Reserve’s Survey of Consumer Finances.
If your net worth is lower than the median, you might be facing financial trouble.
Determine your net worth by adding up your assets — such as cash, stocks, and the equity in your home — and subtracting your liabilities, such as credit card debts and personal loans.
You have a 401(k) balance of less than $90,000
Investors ages 55 to 64 have a median 401(k) balance of $89,716, according to Vanguard. If your 401(k) balance is lower than $90,000, you are likely worse off than many of your peers.
Of course, you shouldn’t overlook other savings. For example, maybe you have saved a lot of money in an IRA in addition to your 401(k) account. Or perhaps you are counting on a pension.
In such instances, you might be doing OK financially even if your 401(k) balance is a little low.
You have more than $157,000 in debt
As you near retirement, wiping debt from your balance sheet is important. During 2023, people ages 43 to 57 carried an average of $157,556 in debt, including mortgage debt, according to Experian.
If your debts add up to more than that amount at age 55, you might be in financial trouble.
If you want to right the ship, consider making debt repayment a top priority. Consider cutting costs elsewhere to pay off debts as soon as possible.
Resolve $10,000 or more of your debt
Credit card debt is suffocating. It constantly weighs on your mind and controls every choice you make. You can end up emotionally and even physically drained from it. And even though you make regular payments, it feels like you can never make any progress because of the interest.
National Debt Relief could help you resolve your credit card debt with an affordable plan that works for you. Just tell them your situation, then find out your debt relief options.1
How to get National Debt Relief to help you resolve your debt: Sign up for a free debt assessment here. (Do not skip this step!) By signing up for a free assessment, National Debt Relief can assist you in settling your debt, but only if you schedule the assessment.
You make minimum payments on credit cards
If you are sticking to the minimum payments on your credit cards, your credit card balance may grow over time due to notoriously sky-high interest rates.
Even if you are technically up to date on payments, it could take years to get out of credit card debt if you only make the minimum payments.
If possible, increase the amount you put toward your credit card balance each month to get out of debt faster
You don't have 3 months of savings in an emergency fund
An emergency fund gives you some financial breathing room to weather whatever life throws your way. Most experts recommend tucking away at least three to six months’ worth of expenses in an emergency fund.
If you don’t have that much saved up, you might be closer to the financial edge than you think.
Trending Stories
You don't have health insurance
Medical care can quickly get expensive. If you don’t have health insurance, you are especially likely to face sky-high medical costs.
As you age, health insurance premiums tend to rise. According to the Centers for Disease Control and Prevention, 80.9% of uninsured adults aged 50 to 64 were uninsured due to high insurance premiums.
You have more than $48,000 in student loan debt
Student loan debt can stick around for decades. On average, student loan borrowers between the ages of 50 and 61 have a $47,660 student loan balance, according to Forbes.
If you are over the age of 55 and have more than $48,000 in student loan debt, this could be a serious financial warning sign.
Your credit score is below 709
Among those between the ages of 43 and 58, the average credit score is 709, according to Experian. If your credit score is below this mark, it could be a sign of financial distress.
You can get your credit score back on track by sticking with on-time monthly payments and lowering your overall debt burden.
You have no retirement plan in place
If you are over age 55, you are fast approaching the traditional retirement age. Whether you want to work for years to come or plan to leave paid work behind soon, it’s important to have a retirement plan in place.
A retirement plan offers a way to ensure your finances are on the right track for your golden years. Without a plan, it’s difficult to know if you have enough for retirement or not.
Earn cash back on everyday purchases with this rare account
Want to earn cash back on your everyday purchases without using a credit card? With the Discover®️ Cashback Debit Checking account (member FDIC), you can earn 1% cash back on up to $3,000 in debit card purchases each month!2
With no credit check to apply and no monthly fees to worry about, you can earn nearly passive income on purchases you’re making anyway — up to an extra $360 a year!
This rare checking account has other great perks too, like access to your paycheck up to 2 days early with Early Pay, no minimum deposit or monthly balance requirements, over 60K fee-free ATMs, and the ability to add cash to your account at Walmart stores nationwide.
Don’t leave money on the table — it only takes minutes to apply and it won’t impact your credit score.
You've been turned down for loans
If a lender has reviewed your finances and turned you down for a loan, you might be in a tough financial situation. Generally, lenders steer clear of borrowers with too much debt on their balance sheets.
Take a closer look at your finances to find potential issues. If you have too much debt, consider making it a goal to get out of debt ahead of schedule to free up space in your finances.
Bottom line
Taking the time to assess your finances is always a good idea. Once you better understand your financial situation, you can start making smart moves to build your net worth.
So, if you see your own situation reflected in the items on this list, now is the time to act.
Lucrative, Flat-Rate Cash Rewards
FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.
Wells Fargo Active Cash® Card
Current Offer
$200 cash rewards bonus after spending $500 in purchases in the first 3 months
Annual Fee
$0
Rewards Rate
Earn unlimited 2% cash rewards on purchases
Benefits
- Low spend threshold for its welcome offer — $200 cash rewards bonus after spending $500 in purchases in the first 3 months
- Cell phone protection benefit (subject to a $25 deductible)
- Can redeem rewards at an ATM for literal cash
Drawbacks
- Foreign transaction fee of 3%
- No bonus categories
- Select “Apply Now” to take advantage of this specific offer and learn more about product features, terms and conditions.
- Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
- Earn unlimited 2% cash rewards on purchases.
- 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers. 19.74%, 24.74%, or 29.74% Variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
- $0 annual fee.
- No categories to track or remember and cash rewards don’t expire as long as your account remains open.
- Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
Subscribe Today
Want extra-cash moves to come right to you?
Stop browsing endlessly. Get proven ways to earn pocket money, help cover rent, and crush your debt — sent to your inbox daily.