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

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.

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.

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.

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 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.

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.

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.

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.

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.

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.

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.

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.