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Older Americans told Business Insider they’ve faced lots of stressors this year. Getty Images; Tyler Le/BI

2025-12-27T10:05:01.259Z

• Older Americans have faced financial insecurity due to inflation, the job market, and concerns about benefits.
• Changes to Social Security and Medicaid increased anxiety this year about financial security.
• Many older workers have struggled to find jobs, citing ageism, technology demands, and rising costs.

Kathleen York, 80, hopes she doesn’t run out of money by 2026.

York works as a contract industrial designer consultant in Illinois, but has not received a substantial pay raise since 2000. York, who is unmarried and doesn’t have children, now works on her online business selling training videos in hopes of earning enough passive income to work less. If her business fails, she’s worried about losing her home.

She spends two hours each day looking for work, knowing this year’s frozen job market hasn’t done her any favors. She recently learned the basics of AI and social media marketing to stay relevant.

"I can’t afford to hire anybody else. I can barely afford myself," York said. "We’re trying to capitalize on what we know, what we can do, and keep up with our skills as best as we can."

This year, I’ve spoken to over 250 older Americans, many of whom are still working into their 80s. Most, including those with sufficient savings, expressed anxiety about their financial situations or those of their peers. Many said they felt more apprehensive this year than in the previous few — or at any point in their 60-year careers.

Inflation and tariff uncertainty led to temporary spending cutbacks, including at the grocery store. Reports of staff cuts at the Social Security Administration led to fear of benefits disruptions. Some states cut Medicaid, and a weaker, more highly competitive job market has made the job application process more cumbersome.

Many felt that older Americans were often forgotten in policy decisions this year. Though some programming has resumed, federal funding for the Senior Community Service Employment Program was delayed for a few months starting in July. Some said it’s become more apparent to them this year that there aren’t enough financial resources set aside for more vulnerable older Americans.

"We put our elders out faster just because they’re elderly, which is just a tragedy," said Joyce Johnson, 80, who works in visitor services for the Indiana State Museum. "I regret that people are expected to retire and are no longer considered useful."

Older Americans are living longer and working later, and many fear their savings won’t last them a decade from now. Some said they returned to work after retiring for extra financial security.

Even with the stock market at all-time highs, many said their confidence in the economy is low, echoing near all-time lows in consumer sentiment. Prices for many items older Americans consume, such as medical care services, household insurance, and housing maintenance, have increased faster than overall inflation, according to the Consumer Price Index, leading many to trim their spending.

"As a country, we need to invest in supports for broad coverage for basic health and basic financial security, and to do that, it requires public investments in the ability for people to have a good, healthy start in life," said Dawn Carpenter, director of financial longevity at the Milken Institute.

Shifts in Social Security

Nearly all Americans in their late 60s and beyond collect Social Security, averaging about $2,000 monthly. About two-thirds rely on Social Security as a major income source, according to AARP.

Cost-cutting efforts under the Trump Administration brought changes this year at the Social Security Administration. Dozens of older Americans told Business Insider that they worried about benefit disruptions or not being able to reach a service representative. Benefits were not cut, though many said that they were more worried about their checks coming on time than in previous years, especially after enduring longer wait times for calls, a Washington Post analysis found.

Earlier this year, online Social Security portals went down on multiple occasions, while some documents and display metrics became inaccessible. In February, the SSA announced plans to cut about 7,000 workers from its 57,000-person workforce, which led to an uptick in customer service calls. The short-lived Department of Government Efficiency had identified 47 SSA offices it planned to close or consolidate.

Despite a brief uptick in call times, fears of major disruptions did not materialize. In a statement, an SSA spokesperson said the SSA reduced the year-over-year average answer speed to 15 minutes this year, down from 28 minutes last year, and served 65% more callers. The spokesperson also said visitor wait times at field offices declined by nearly 30% year-over-year, while the SSA decreased the backlog of pending initial disability claims.

"Under President Trump’s leadership, Commissioner Bisignano continues to transform SSA into a model of excellence—an organization that operates at peak efficiency, delivers world-class service to every American, and protects and strengthens Social Security for future generations," the spokesperson said.

Older Americans also said they feared that their allotments would decrease in a few years, as Social Security’s trust funds may begin depleting by 2033, potentially reducing benefits by about 20%. Some said they took Social Security years before turning 70, accepting a lower monthly allotment to have extra financial padding.

Another concern was that the cost-of-living adjustment would not keep up with their budgets — benefits will increase by about $60 next year due to a 2.8% COLA — while a few worried the raise could propel them above qualifying income thresholds for aid programs.


Linda Kemp, 84, works for her son’s law firm. Linda Kemp

Linda Kemp, 84, gets around $600 a month in Social Security, as she was a caregiver for her seven children for much of her working years. She moved into a house her son owns, where she pays for utilities with her Social Security income and her earnings working for her son’s law firm. Social Security isn’t, and likely will never be, enough for her to live on.

"I don’t know what the options are for my future, and I have to figure it out," said Kemp, who lives in Florida. "At 84, I’m slowing down and don’t have all the energy I used to have."

Cuts to Medicaid and fears about Medicare

Medicare and Medicaid are lifelines for many older Americans, especially the roughly 45% of older households with limited savings, but recent shifts have magnified some recipients’ anxiety. For millions of lower-income older Americans, Medicaid provides long-term care services. As part of the One Big Beautiful Bill Act, Medicaid spending could be cut by about $911 billion over the next decade. The bill included new work requirements for adults under 65, some of whom need long-term care support.

People over 65 can qualify for Medicaid if they have limited assets and low incomes, though receiving benefits has sometimes come at a cost.

"This has created a demoralizing situation, because if you have the money, you have to spend it on long-term care, which is super expensive. If you don’t have the money, then your life quality is going to suffer, but you’re fully admitted into the long-term care facilities run by the government," said Mo Wang, a distinguished professor at the University of Florida’s Warrington College of Business.

It’s likely that many of the over 7 million low-income older Americans could have their benefits cut, burdening people needing nursing facility care or facing out-of-pocket medical expenses.

Medicare premiums will also rise next year. Rising healthcare costs will push the monthly Medicare Part B premium up nearly 10% to $203, which will eat into Social Security benefits.

"When you get Social Security, they give you a 3% raise, and then Medicare takes a good portion of that because Medicare rates also increase," said Vince Scidone, 91. "That 3% is not really a 3% raise."

A difficult job market

Older Americans comprise the fastest-growing demographic in the workforce. Nearly 550,000 Americans 80 and older work at least part-time.

This year’s labor market felt "impenetrable" and "impossible" to navigate, according to some older job seekers. Job growth slowed this year, while unemployment has risen above 4%. Despite some gains in healthcare, many industries remained stagnant, hiring few workers but holding off on major layoffs.

Some in their 70s and 80s said the only jobs they could find were lower-paid, inflexible, or physically demanding. Very few landed a job with a comparable salary to what they held at the peak of their careers. Others resorted to opening a business or doing gig work. As a few older job seekers put it, ageism felt even more rampant this year.

Many older workers cited AI as an extra stressor. Some said they’ve noticed more jobs this year requiring AI proficiency, while others with necessary qualifications felt they were instantly disqualified from tech-focused jobs because of their age. Some suspected AI screened out their applications.

Peter Berg, a professor of employment relations at Michigan State University, said companies should do more to attract older talent through more flexible work schedules, hybrid opportunities, and intergenerational training — which could have longer-term economic benefits.


Linda Styers has struggled to find a job in her 80s. Linda Styers

Linda Styers, 83, worked as a contractor for the Arizona Department of Economic Security before she was laid off this year. She hasn’t found any jobs in her few months of searching, including low-wage roles at retailers. She’s frequently met with no response, and interviews have been sparse. While she has enough saved to cover her expenses, she wants "frivolous money" in case something breaks. She adopted four grandchildren in her 60s, and much of her past earnings have gone toward supporting them.

"Everything is so different with technology because it’s so easy to apply to jobs instead of showing up" to an in-person interview, Styers said. "I guess I’ll just hope for the best."

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