Rainy Days Don’t Retire: Older Adults, Financial Shocks, and the Promise of Emergency Savings Tools

As life expectancy in the U.S. increases, older adults will comprise a larger share of the population than ever before. At the same time, older adults will play an increasingly important role in the U.S. economy. Their contributions through consumption, labor, and unpaid activities—such as providing care to others and volunteering—is expected to grow to over $27 trillion by 2050, more than triple their contribution in 2018. For older adults—and America—to thrive amid this transition, it will be vital to ensure their financial stability. Yet our analysis finds that nearly half (47 percent) of older adults lack the liquid savings they need to be protected from financial shocks.