Retirement Retired Life

10 Warning Signs You're in Financial Trouble If You're Over 65

Now is the time to review your money situation and make changes if necessary.

By Chris Adam

Edited by Chris Kissell

Updated Jan. 22, 2025

Retirement is a joyous time for many, but it is fraught with financial worry for others. When you no longer have a regular income, money can become tight, making it difficult to cover expenses.

Here are some warning signs for those over age 65 that financial trouble might be on the horizon. Review this list and if necessary, make money moves to improve your situation soon.

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!¹ See website for details.

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.

Apply for a Discover Cashback Checking account today

You have a net worth of less than $400,000

One good way to gauge your financial health is by your net worth. That represents the difference between what you own and what you owe. You can figure out your net worth adding up your assets and then subtracting your liabilities.

Data from the Federal Reserve's Survey of Consumer Finances from late last year put the median net worth of those between the ages of 65 and 74 at a little over $400,000.

If you aren't close to that number, it may be time to take a more serious look at your finances so you can make changes and get ahead financially.

Who really has the cheapest auto insurance in your area? Check your zip code here.

You have a 401(k) balance of less than $87,000

An employer-sponsored 401(k) is among the best tools for retirement investing. Last year, Vanguard pegged the average 401(k) balance for those 65 and older at around $87,000.

If your balance is substantially lower, consider it a warning sign.

You don't have 3 months of savings in an emergency fund

An emergency fund is helpful to have at any age as an adult. As a retiree, it's particularly important, since you no longer have a regular salary coming in.

So, if you don't have enough saved up to cover expenses for three months, you probably are financially unprepared for a surprise financial setback.

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!

You’ll also get insider info on social security, job listings, caregiving, and retirement planning. And you’ll get access to AARP’s Fraud Watch Network to help you protect your money, as well as tools to help you plan for retirement.

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 $15 the first year with auto-renewal.

Become an AARP member now

You forgot to apply for Medicare

If you are over 65 and have not applied for Medicare, you need to address the situation immediately.

By failing to apply for Medicare during the year you turned 65, you likely already face penalties. These are typically added to your monthly premium and usually last for as long as you have the coverage. That probably means a lifetime penalty.

The longer you wait to sign up, the more the penalties can add up.

You don't have a plan for long-term care

Retirement planning means thinking about long-term care. As you age, it's possible that you will need help performing daily tasks. This can be very expensive, even potentially financially ruinous.

So, it's important to have a plan in place. Because Medicare will not cover these costs, some people opt to purchase long-term care insurance. Whatever you decide, create a strategy now rather than later.

Your credit score is below 745

A good credit score can be a financial advantage at just about any age. Better credit scores can help you get good deals on credit cards and mortgages.

In early 2023, the average credit score for those over 65 was 745, Experian says. If your score is lower, take steps to boost it, such as making your payments on time, every time.

Retirement News: Almost 80% of Americans fear a retirement age increase — here’s the real reason why

You have more than $49,000 in student loan debt

Sometimes,it takes a great deal of time to pay off student loans. Those who are 62 and older typically have $49,000 in student loan debt, according to a Forbes report.

If you're approaching retirement age or already there, it may be a warning sign of money trouble if your student loan debt is much higher.

You tell fibs to others about your finances

Perhaps you're not totally honest with others when talking about your finances. While this can be a troublesome sign at any age, it may be especially worrisome if you are over age 65.

Think about it: If you feel the need to fib about your finances, you're probably feeling uncertain about them.

You stop giving to charity

There are many reasons you might decide to cut back on charitable giving. But it's worrisome if you stop giving simply because your finances aren't in the best order.

It can feel impossible to give when money is tight. If you find yourself making this type of decision, consider it a warning sign that something needs to change.

In 2023 Americans lost over $10 billion to identity theft and fraud

That's right. According to the FTC, Americans lost over $10 Billion to fraud and identity theft in 2023.

But you can safeguard your data with all-in-one identity theft protection services from Aura which comes with $1,000,000.00 in identity theft insurance² Identity Theft Insurance underwritten by insurance company subsidiaries or affiliates of American International Group‚ Inc. The description herein is a summary and intended for informational purposes only and does not include all terms‚ conditions and exclusions of the policies described. Please refer to the actual policies for terms‚ conditions‚ and exclusions of coverage. Coverage may not be available in all jurisdictions. per adult, to cover you should you have eligible identity theft-related losses.

An individual plan starts at $9 per month, and you can choose a family plan that outmatches most others - includes Dark Web monitoring to scour data breaches and leaks for your sensitive personal data — such as Social Security numbers (SSN), Medicare information, and phone numbers.

Before you make your next online purchase, protect what you’ve built for a fraction of what it could cost you if your data were compromised.

Save up to 68% when you sign up for protection today!

You have more than $100,000 in debt

One of the key steps to preparing for retirement is to work on paying down debts. Americans who are 56 to 74 typically have about $100,000 in debt, according to credit-reporting agency Experian.

Keep in mind this includes all debt, including mortgage debt. If your debt numbers are higher — or if you have paid off your mortgage but still have a lot of debt — now is the time to get out of debt once and for all.

Bottom line

These are a few of the warning signs that might signal you are in financial trouble if you are over 65. If any of them are true for you, it may be an indication that you need to make changes to better manage your money.

Remember, even a small step — such as taking the time to review your budget and making small changes — can go a long way to boosting your financial fitness during retirement.

More from FinanceBuzz: