One in three Americans ages 65 and over have at least one disability. Older Americans with disabilities and their surrounding caregivers face a myriad of physical, financial, and mental health challenges directly and indirectly related to disability status. This Issue Brief examines the prevalence of disability among older adults and the impact of being affected by disability on various aspects of retirement, from preparedness to debt levels and monthly spending.
Some of the key findings include:
- More than half (61 percent) of disability-affected retirees said they saved less than was needed for retirement, as compared with 41 percent of non-disability-affected retirees.
- Disability-affected retirees were more likely to say they retired earlier than expected (74 percent) vs. non-disability-affected retirees (49 percent).
- Disability-affected retirees were more likely to start off retirement with fewer assets and subsequently have lower median and average values of household financial assets than non-disability-affected retirees. Non-disability-affected retirees have 2.3 times the average current assets of disability-affected retirees.
- Disability-affected retirees were less likely to report that they have an “easily manageable level of debt” and more likely to report having debt outstanding across all types of debt as compared with non-disability-affected retirees. Credit card and medical debt stood out as the largest differences with respect to debt prevalence.
- Fifty-seven percent of disability-affected retirees spend less than $2,000 each month as compared with 45 percent of non-disability-affected retirees. Disability-affected retirees reported spending more on housing and out-of-pocket medical costs and less on entertainment and other expenses compared with non-disability-affected retirees.
- Disability-affected retirees were more likely (36 percent) to feel their current spending level is higher than they can afford as compared with non-disability-affected retirees (24 percent).
- Disability-affected retirees were more likely to report difficulty with budgeting decisions as compared with non-disability-affected retirees. On average, 1 in 6 disability-affected retirees reported difficulty making budgeting decisions compared with 1 in 10 non-disability-affected retirees.
- Disability was also correlated with lower levels of well-being across the measures of alignment, satisfaction, and standard of living. In addition, disability-affected retirees were three times more likely to be seeking treatment for depression/anxiety (27 percent) than non-disability-affected retirees (9 percent).
Figure 13 Figure 12, Monthly Spending ................................................................................................................................ 11 Deb S Mor A D B C am a m ons is o sed a ong b ur e b ula t ili rt t a ha ces on ttold int in y or n ha -a ts on y e he ff R rd o e a e iff lf (6 c A f d tt b C ie ult c I ir udg S d ult nc 1 p s, e d re y a m e o t e it tw t ir a r ing m c is e e , ae e s t tnt nt im e s he ahe w )n p rand d e of e e r r m w g e ad rost te e is m iv ra M a e e or tb c e 54 for ili e o o r m tnt d lik .7 mi y e m t-he e a chly S on ly is ff ion e lli b tc d o e on tis ne e -st m d aindiv pe fit a b a rrili k e s indust t ing t tndi off r ir yidua eae c m s h e ng ls ong t a sa ir rlle y a e id g m nge a old e nd tes he nt s c 65 ep y rw olic ont sa indiv or ith fe v y rol e ibut c d idua d om w e le re ess m r ls a ts of a uni o , tss ha w he te it y n w 20 tight h s t t o 15 21 a ha e c s ne olla ne p (n non Fi ed rg e b c ur fin e d or nt ee -a a d d tnc 1 is re fo e ) a . ia p on rb or Of th l d ili ret solu tting is yir-ce a e om m tff se, tions his e efor c nt t 17 e t , ty td .8 mi ha p a e m t of ong wlli illon A Brbout idget B e E aB rdR en I ’is s Re 20 sea 2r2 ch S &pe Dending i velopment n St R re att eir gis e tm ate the nt E S mur ploy ve eey B enefit Research Institute (EBRI). This The Impact of Disa Allocb atil ion it oy f M on onth Spe ly Spen n dd ining g by E i xn pe Reti nse Typreement 4 d he ( d c re 32 om is is tlp ir a a.5 p b b e ptili ili e a his s, c rt te e y yr - d p c a a onsi e op m w ffnt e it ong ula c ) h st t r e 41 e e t d ion nt tp hose r or p ew e tm tir r ed itc a e h t e a int e nt g h she e a , a s 65 t v of in w ing p ho non a end r a c w o e t- , e p d le 74 id rtis e a ion th e a st y m a b e lly ili or one at r,e y a s old im - t lik a d tff p he is er e a ly ov a c yb nd t ( ili e e d36 d id tty 30 he r . not p eA t ir e p ir m r e q c esa r ong e e ua cnt s e v lit nt e ( ) Fi indiv y t e o r g noug of eur fe por idua lif e e6) l th e th a ing . . ls The e W nd ir a ithil g c a te ur he la e m s r r p ong g 65 e m re nt iv st – or a 74 t spe te d ho e iff , ce se om 4.4 m nding e m re p a m nc loy gon e ill e le s 75 a m ion (1 in v e ee xpe n l tthe w -n b r3.3 p a se d ie as sed nc ov highe tw e e e o r b rof c e g e (r n rFi r nt e oup e tha g fit t)ir ur ha s n t in s eha g w d he 4) a v one s . e y Issue Brief was written with assistance from the Institute’s research and editorial staffs. Any views expressed in D Dis isa ab bili ilit ty y -a aff ffe ec ctte ed d rre ettir ire ee es s w we erre e lle ess ss lik like ely ly tto o rre ep por ortt ttha hatt tahe 40 y 1( ha kd ) or an si “e m aila sily r w m or ana kpg lae ca eb rle e tle ire vm el o ent f d sa eb vtings p ” (31 la pe nr,c ednt efin ) ae nd d Figure 13, Allocation of Monthly Spending by Expense Type ................................................................................... 12 By Bridget Bearden, Ph.D., Employee Benefit Research Institute Respondents included in this survey were ages 62–75 and considered themselves “retired, not working” or lim c t e The ay a m ap n a rit ong e lie e p of d ff re or r ta td ha chose b e d isili nt n e a ctb om a yili g xp w tt e o p y ho ea , of im crw te sa e p thil d he d r id ov . w e A old it te 3.6 m p he h p te he r no yr o sa xim p n q ill op -v ua ion ( de a is ula d lit ta e “ y b ly t10 m ion w ili of 8 uc t.y 7 p lif in 10 d -h le ae it ff e h ind of e rss c ce t ce nt t is ur ha de a ) rp b rn w e ha e e ili nt tnde tir d y a e d -ts ne e a is w nt s ff a o e ( b liv 24 c e or ili td ing e t y e m d p- d e a or r ”d rff e : c iff e te e 39 ir c nt ic te ty ul e e ) p pd s st e e t( y Fi r s of r c e a g e a tnd ur r nt irtd e e e e is of d he s (ba 15) ara b d er ili is t. ing irta C r e ie b ro m in s ild ns . it e g iff y The nt e- a ic q a ul w ue r ffep it e tty nt c r h le ur e tw ly e v n to w d a a , ss s le d r e is si nc ttha a m ire or b e i n $250 ili la e of kt s r y o . d v -r a is. sa p ff r,19 e b og 00 c ilitr 0 i tey a d m n s b meor ne e tfit his lik p erla ly ep n tor , o or tsa aindiv y r M e on t he those idua thl y y ha E l r of d xe pe a tthe ir ns “e m m e aa ut e Ty na nt hor pe g a ec aa c bnd ount le lsh e v( D ould e IiRA l o sabi f d )not lw ie te y b rb t A e ”e f f sour (e a 51 c sc te rp c d ibe e er s of c dN e t nt ot o inc )D t he tiom ha sa offic bi n non e lirtight ye A r-s, t fd fnow e isc raus tb eili d tin r e ty e-s, or e atff iree cm ot te To e he dnt tr a r. e lsponsor tIir ns etees ( ad47 s of , 77 pe ErB cR ent I, “retired, working part time,” or they had an active labor market status but considered themselves retired from a Figure 14, How Easy or Difficult Is It for You to Do the Following...? ....................................................................... 12 inc for a p re ss etrir re c c ee e tur a s, e nt ses s re cw of om nt e w non rc it p e ah r ris le e -a ing d s g g s lik is iv ea e , 39 b rw e s ili ) it ly p t,h y e t(-he r49 3 ac.9 mi ff e r e nt e pc e a tr w e rlli ce d it e on h le nt m rea )t( ir ny 18 t ss o ee .r op t5 p sha e.p pn $50, or e or rt ct e uni tha nt) t 00 tie indiv ts t 0 a heo ir nd id he sua palp enot ls nding fut ahe gur er s e w 39 75 a ds is por a a eb b r c ili out old etnt ye -t a rhe w ff ha it e h b rcv ight ting ee dt w ra one em e tir e ount n $50,0 ete yp s. e for of 00 w dis ha a and tb ili the t$2 yy a 49 c nd a,999 n a 5.9 ff in ord EmployH ee o uB se inne g E fit x pRe ens sea esrch Institute-Education and Resea 33% rch Fund (EBRI-ERF)29% , or their staffs. Neithe 30% r EBRI nor p and erce 40 nt pof erc de isnt ab , ili re ty spe -aff ce tiv cteely d) r( eFi tir ge ur es e w 10) er.e more likely to have Social Security as a major source of income vs. 67 April 20, 2023 • No. 583 primary career. The survey sought to understand the Figure ir curre 4nt financial situation, understanding of their income c m aom ss ille ion (27 p ts a r(e Fi dg .w ur 6 p it eh e 8) non rc. eC nt -om d )is ha p aa bv rili ing atty iv -e taw ly ffo e , c 53 or te d m p e ror e rc teir e nt e ty ep s (5 of es of non 8 pd -ed is ris c ae a bn b ilitili t)ie .t ys-.a ffected retirees started retirement with less than Food Expenses 25% 26% 25% percE ent BRI of -Enon RF lob -dis baie bs or ility- a ta ffke ecs p ted o si re tions tiree s on . In a sped cd ific ition, poli26 cy p pe rop rce osa nt ls of . tEhe BRI d is inv abitili ets c y-a off m em cte ent d p on opt ula hist ion r resea ep rc or h.te d disability Figure 15, Do You Feel Your Current Spending Level Is...? ..................................................................................... 13 Introduction E mploy 35%ers could offe Prev r educ alen ationa ce l r of e sour Disab ces on ility fe T dy er pe ally Figure Figure A fun mong de10 d 6 dPop isabili ul tyat pio rog n ra A m ge s, foc 65 an usedd eO mp vloy eree resource sources, sources of information used for retirement transition, and retirement goals and satisfaction. $250,000 in Ta rass nsepto s, inc rtatiolus n Eix vp ee n of se23 s percent with less than $50,0 11% 00 and 30 percent w 11% ith between $50,00012% and $249,999 insurance as an income source. The presence of disability within Percept a housDescrip eio hold n of ca n ha th tio e n v A eof m a Deb ou sign nif t t ic Sav Man ant ed im ag p fo a eab ctr on Ret ilit ay n e iremen mployt ee’s current and future A gr m oup ong s, a indiv nd idua specls ia a liz ge ed s fin 65a –n 7c 4, me ial pla n nni we ng re in or signif dic er a nt to lyhe Figure m lp o rim e lik pr15 ov elye tfin o ra enc poia rtl ha out vc ing oma ets le for ast t hose one d ais ffa eb cili tetd y b (25 y d p ise arb cili ent ty) Medical and Health Insurance 7% 8% 8% in a ssets. The Impact of Disability on Spending in Retirement Suggested Citation: Bearden, Bridget, “Impact of Disability on Spending in Retirement,” EBRI Issue Brief, no. Overall data are reported on a weighted basis, based on race/ethnicity, income, and gender. The survey included financial situation, affecting an individual’s ability to save in the short term and more rapidly drawing on financial ( ca om nd ptahose red w lik ith ely w tom o b ee n (23 affec p te ed rc Do ov ent e ) Y r ( ou tFi he g ur Fe long eel 2 ) te . YrThi ou m)s r . Sp p Cu re ev c rrent a ia le liz nc ee d Spen swit financ che di ias w ng l pla itLe nni h th v ng el e old cIs...? ould est e cnt ohor ail tinc , in w orpor hic ah ting wom highe en (r47 30% No Debt An Easily Manageable Level of Debt A Manageable Level of Debt Among the E to ntta el Sp rtaine mnding ent Ex in pen Re setsirement Survey sample, the m 7% edian Social Security 9% claiming age was 63 ov 8% erall and 62 583 (Employee Benefit Rese Mu acrhc Mo h I re ns Tha titn W ute as , Nee Aprde il d 20, 2023). A Little More Than Was Needed By resour Bridg an o ces vein t e rsa t Bea he mp long lerd of e er 39 n t, e 6 B rPh.D., ml. ac Fu k rA t E he me rmplo r m icor ans e, ye a the nd e Ben im 40p 0a c H etis fi of p t R ad nic is ea sA be ili m a te y rch I r ic com ansns p. ound Unle titut s ss e ov ot ehe r trim wis e, er indic esulta ing tedin a , the m d or atea substantial p meerd ce icnt al c ) w ost ers in r e sige nif tiric ea m nt ely nt ,m eor arelie lik r e aly ct ua to l r reepto irretm ha ent ving s, aFigure and t led ais sta b one 8ility d ins isaur bili atnc y e c om intp oa rre etd ir e w m ite h nt m p ela n (45 nning p. erW ce hil nte) .m W ao ny m en Clothing Expenses 6% 5% 7% for those who were disability aff Abo ec utt th ed e. Ri The ght Am mou ed nia t n age of 62 for Soc A Littl ia el Se Lessc Tha urit n W y c as la Ne imed ing ed also resulted for Black retirees, An Unmanageable Level of Debt A Crushing Level of Debt Much Higher Than You Can Afford A Little Higher Than You Can Afford 3 represent a sample size of 1,998, weighted based on gender, race, and income. At 95 percent confidence, the strain throughout the individual’s lifeA . These ssets fa Held ctors c When ontribut Start e to a in uni g Ret que iremen set of cha t llenges faced by retirees affected w dis ea re b ili m tor ies a e lik ree ly ac q to uir re ep do w rtit ha h a ving g Mu e, ca h m Le m ab ny ssula Tha atror n W e y aas ls a Ne o nd ide ed inde ent d ifi pe ed n d de ur nting living word kiff ing icul ca ty re reerla s o tiv r ee a to rlie mre , n jus as a tifyg ing e inc the re a offe ses. ring Ov of er Other Expenses 5% 7% 6% Hispanic retirees, those with less than $30,000 in annual household income, and those with poor self-reported health C 25o % pyright Information: This report is copyrighted by the Employee Benefit Research Institute (EBRI). You may 50% About the Right Amount for What You Can Afford A Little Less Than You Can Afford by dm isa ab rg iliin of ty in a erd rd or it ion to th is 2.2 pee r cceha ntlle in a nge si s fa mila ce rly d b siyze ad ll r ra endo tiree m s. sa In o mprle de . rP tle o acse ount not ee ra p ce t rtc he ent se ag de iff s in t iculthe ies, follow policy ing matkaebrle s a s nd 5 Out-of-Pocket Medical Cost 6% 4% 5% t ahe cc ide last nt 10 al, y sh ea or rs, t t-tehe rm ,p raend vallong ence- tof erm dis dais ba ilb itili y ta ym ins ong ur atnc hee old bee ne r p fit osp, ula as w tion ha ell as s long aver-a te grem d 47 car p e eins rce ur nt a nc am eong . In a m dedn a itiog n, es 75 status cop . y , print, or download this report solely for Disability Affe p ce ted rsona No l a t Di ns d a bi nonc lity Affe om ctem d ercia Tota l use l , provided that all hard copies retain Disability Much Less Than You Can Afford A T A G L A N C E Disability 5% 31% 51% 11% 2% and charts may not total to 100 due to rounding and/or missing categories. employers cSo an urce pla : y EB aR n im I’s 2p 02 or 2t Sp ant en r dole ing iin n Rim etip rele mm en etnt Su ing rve yt .ailored solutions that can address the particular needs of this e a nd mploy ove err s and could 50 e pna e 4% rc bele nt 7% e a m m pong loye e w om cont en a ribut 29% ge io sns 75 a a nd nd offe ove r ra ( Fi mg aur t21% ce h 3 to ). AActhie the ving sam a eB teim tte er, L the ife r 39% E e xpe has b riee nc ee n ( a Ad Be Lc Elin ) ing Affected 45% any and all copyright and other applicable notices contained therein, and you may cite or quote small portions of 20% Affected p Cop onsi ula stte ion nt w as t ith he pr ye m vious ove e thr vid oug enc h th e of e ha wor ving k for fecw ee a r nfin d a int nc o ia rl r etir esour emec nt e. s, more disability-affected retirees spent less than a trcecnd ount in t s, w he hic pre hv now alenc ha e of ve d ain inc sabilirte ya a sed mong ag et hose maxim 75um and for ov ee nr r, ollm with e nt a 6 p of 46 erc y ee nt a rd s old eclin e eff ov ecetr iv tehe D e 10 ce-m yebaerr p31 er, iod 20 25 for, men One in three Americans ages 65 and over have at least one disability. Older Americans with disabilities and their the report provided that you do so verbatim and with proper citation. Any use beyond the scope of the foregoing Consistent with the idea noted earlier that disability-affected retirees saved less than what was needed for retirement, Defining the Disability-Affected Sample Disability 40% $1,000 each month (20 percent) than non-disability-affected retirees (13 percent) (Figure 12). This spending constraint a thr nd oug a 10 h SEC perURE 2. cent 9% de 0. clin AB eL a Em aong ccoun w 27% om ts aellow n. those with disabilities or their 49% legal representatives to save10% money 4% above the surrounding caregivers face a myriad of physical, financial, and mental health challenges directly and indirectly related requires EBRI’s prior express permission. For permissions, please contact EBRI at permissions@ebri.org. Affected 15% about one-third said that housing costs, health insurance, and medical c30% osts were higher than expected. Presenting data from the American Community Survey (ACS) from the U.S. Census Bureau and EBRI’s 2022 Spending in p ersisted with the next thousand-dollar increment. Cumulatively, 57 percent of disability-affected retirees spent less asset limit for public benefit programs like Supplemental Security Income (SSI), Medicaid, and Supplemental Nutrition to disability status. This Issue Brief examines the prevale Finc gu ere of 2 disability among older adults and the impact of being The Spending in Retirement Survey uses a different methodology than the American Community Survey (ACS) 35% Retire No m t Di ent sabi Sur lity vey, this Issue Brief examines the prevalence of disability among older adults and the impact of being Not Disability than $2,00 Repor0 e t Availabili ach mon 4% tty h co : Thi mps r are ep dor wtit is h 47% a 45 va p ile ar bcle e nt on of the non int -d eis rne abtili atty -w aw ffe wc.e teb dr i.or retir g 40% e es. 8% 2% Assistance Program (SNAP). 22% affected by disability8% on various 12% aspe Prev cts of alen rece tireof me nt Disab 39% , from ilit pry e, A parge eds ne65 ss tan o dd ebO t 22% le ver vels and monthly spe 19%nding. RelativA effe to cted health care, disability-affected retirees were more likely to report receiving insurance through Veterans 21% for d Ae ffe fin cted ing the disability-affected sample. The Spending in Retirement Survey sample classified retirees as 10% affected by disability on various aspects of retirement, from preparedness to debt levels and monthly spending. by Gender, All Civilians, 2021 A ffairs (7 percent) as compared with non-disability-affected retirees (3 percent). They were less likely to report having d30 isa %bility affected if they receive disability income, report their personal or spousal working status as disability, or 50% 15% 46.8% Some of the key findings include: Not Table of Contents Male Female 12% Me digap insurance to augment Medicare (11 percent vs. 16 percent of those not 45.1% disability 12% affected). However, retired due to disability or a health problem not related to COVID-19, accounting for 509 weighted responses, or Disability 3% 21% 58% 11% 6% 5% 45% 9% Figure 12 8% Introd 25 uc %tion .......................................................................................................................................................... 4 Affected disability-affected retirees were more likely to report having long-term care insurance (29 percent)7% than non-disability- 25.5 percent of the survey respondents. The following charts and tables include comparisons between the P revalence of Disability Among Older Adults • More than half (61 percent) of disability-affected retirees said they saved less than was needed for retirement, 5% 47% Monthly Spending 4% 4% Total 40% 4% 42% 43% 9% 2% Total 7% 11% 36% 22% 24% affected retirees (19 percent). Prevd ais lea nc bili e tof y-a D ff is ea cb te ilidt ysa Am mp ole ng aOld nd tehe r A non dult-sd ................................ isability-affected samp ................................ le, as well as the over................................ all/total from the full sa ............ mple. 4 According as c to om the p a Arm ed e rw icit ah n C 41 om pe m rc uni ent ty of Sur non vey -d , is 42 ab .5 mi ility-lli aff on Am ectede r re icta irns ee s. of all ages, or 13 percent of the entire 0% 20% 40% 39% 39% Disability Affected Not Disability Affected Total 35% Population Population Pop 1 ulation Population Population Population Population Population Population Population Population Population popula 60t% ion, have a disability. The American Community Survey, the Survey of Income and Program Participation, and About EBRI’s 2022 Spending in Retirement Survey ................................................................................................... 7 65 to 74 75 years 65 to 74 75 years 65 to 74 75 years 65 to 74 75 years 65 to 74 75 years 65 to 74 75 years EBRI was able to fund the development of this research thanks to generous support from EBRI’s Retirement 32% Endno • D tis ea sb ility-affected retirees were more likely to say they retired earlier tha 2n expected (74 percent) vs. non- years and over years and over years and over years and over years and over years and over 15% 30% the Current Population Survey use a six-item set of questions to gauge disability. Survey respondents may select 30% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Budgeting and Spending 27% 2022 SpT eota nding l in Retirement Survey: Disability-Affected Sample .............................................................................. 7 Security Re 5% search Cente 22% r, Alliance for Lifetime Income, LGIM, 56% and Edelman Financial Engines. 11% 6% disability-affected retirees ( 49 percent). With a Hearing With a Vision Difficulty With a Cognitive With an Ambulatory With a Self-Care With an Independent 25.1% multiple types of disabilities within the survey. The six disability types are: 23% 22% Source: EBRI’s 2022 Spending in Retirement Survey. 1 50 25% % Difficulty 23.0% Difficulty Difficulty Difficulty Living Difficulty Those affected by disability reported more disciplined monthly budgeting. Specifically, 44 percent of disability-affected U.S. 10 Ce %nsus Bureau, American Community Survey. 2021 ACS 1-Year Estimates. S1810 Disability Characteristics. Total Transitioning Into So Re urcte ir : e EBRI’ mesnt 20 ................................ 22 Spending in Retirement Survey................................ . ................................................................. 7 • Disability-affected retirees were more likely to start off retirement with fewer assets and subsequently have retirees said they stick to a monthly spending plan to a great extent, as opposed to 37 percent of non-disability- Civilian 20 % Noninstitutionalized Population. 1. HSo ea urc ring e: U.S. diff Cen ic sult us Bu y re — au , D Am ea erif o canr Com ham vuing nity Su ser rveious y. 202 1d ACS 1 ifficult -Yey ar Es he tia mr aing tes. T.o tal Civilian Noninstitutionalized Population. Disability-affected retirees were more likely to report having debt outstanding across all types of debt than non- Debt in Retirement ...............................................................................................................................................10 5% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2022 Spending in Retirement Survey: Disability-Affected Sample lower median and average values of household financial assets than non-disability-affected retirees. Non- a D ff ise acbtili ed ty r-e atff ireecets. ed A rte tthe ire esa s m we er t eim 50 e, pdeis rc ae bnt ilit y m -or affee c lik teed ly r e to tirsa ee ys tw he ey r er e m tir or ee d lik eae rly lie r to tha ren poerxpe t diff ctic eult d v ys. wnon ith b -d udg isab et ili ing ty 2. Vision difficulty — Blind or having serious difficulty seeing, even when wearing glasses. 2 40% d is U.S ab.ili 15 Ce t% yns -au ffse c Bure ted aru, et ir He oe w s . Dis Spaebcilifi itc ya Dat lly, ac r ae re d it Colle card cte ad nd fro m m ed Th ice a l d Ame ebric t st aood n Commu out anity s the Surve largye.st differences. Disability- 37% Differences in the prevalence of disability are observed by race. Those who are Black or African American alone, Sources of disIanc bili om ty-ea ff and ecte Mont d rehly tire e Sp s ha ending ve 2.3 t ................................ imes the average c................................ urrent assets of disabili ................................ ty-affected retirees. ..............11 d De isca is bions ility- t aha ffenc tnon ed r-e dtis ira eb eili s tin y-a the ffe cfollow ted re ing tirea ena s (ly Fisi gs ur aer e 14) de. fine On da v ae s rraegte ir,e 1 es w in 6 ho d is eit ab he ilirt yr-eatff ire ed ct e dd ue r etto ird ee iss r abe iliptor y or ted a nother affected retirees (Figure 7). In other words, 74 percent of disability affected retirees retired earlier than expected, vs. 3. CognitiSo ve urc d e: iff EBRI’ icul s t2y 0 2— 2 Sp B en e dc ina gus in Ret e of irema e np t Su hy rvsi eyc .al, mental, or emotional problem, having difficulty remembering, http affes c:t/ e/d w w rew tir .ceeens s u wse .g re o vsu /to bp st icasnt /hia ea lly lth/ mo dis ra eb lik ility ely /g ui to dr ae nc por e/d t a ha tav -c ing olleccrtion edit- accasr.d html deb t (54 pe rcent) and medical debt (22 0% 33% A meric 10a % n Indian and Ala 32% ska Native alone, and Hispanic or Latino were more likely to report a disability as compared d 49 he iff a p ic lte ul h p rc ty er nt ob m a of le km ing non orb -udg a dris ea e d btis ili ing a ty b-ili d ae tff y ce is a cions ff teedc t re c eo d tir m in a ep ea s. r not eOnly d he wit r 22 h 1 wa p yin e , rrc 10 ee pnt rnon e sent of -d dis ing isa ab b a ili ili tw ty ye --a a ight ff ffe ec c ettd e e d d 25 rre .5 p ettir ire ee e ers sa s. C centid onseq of the the y ue rsa e nt tm ir lye , pd le d is a b aout bilit y- concentrating, or <$5 m 0,00 ak 0ing decisions. $50,000–$249,999 >=$250,0000 Budgeting and Spending .......................................................................................................................................12 percent) compared with non-disability-affected retirees (36 percent and 8 percent, respectively) (Figure 11). 3 • Disability-affected retirees were less likely to report that they have an “easily manageable level of debt” and with t 30 hose % who are White alone, not Hispanic or Latino (Figure 5). Department of Labor Office of Disability Employment Policy. “Spotlight on Women with Disabilities”. March 2021. a pff op eula ctetdion. retir The ees sa wm erp ele le rss efle likce ts r ly teo tir sa ee ys m thae te b ting udgone eting ord e m cor isions e of w the er e follow very ing or som criteerw iaha : t easy for them (averaging 62 when th 5%ey expected as compared with 46 percent of non-disability-affected retirees. 4. Ambulatory difficulty — Having serious difficulty walking or climbing stairs. Source: EBRI’s 2022 Spending in Retirement Survey. Retirees affected by disability were less likely to have set aside emergency or rainy day funds that would cover C onclusion ...........................................................................................................................................................13 more likely to report having debt outstanding across all types of debt as compared with non-disability-affected http s://www.dol.gov/sites/dolgov/files/ODEP/pdf/Spotlight-on-Women-with-Disabilities-March-2021.pdf percent) compared with non-disability-affected retirees (averaging 73 percent). 5. Self-care difficulty — Having difficulty bathing or dressing. 0% Figure 11 expenses for three months in case of sickness, income loss, economic downturn, or other emergencies (56 percent) retirees. Credit card and medical debt stood out as the largest differences with respect to debt prevalence. • Rea 20% son for retirement: Re 20% tirees who reported their retirement reason as “You (had/have) a health problem Endnotes ................................ 20% ................................................................ Figure 5 .............................................................14 4 6520% to 74 Years 75 Years and Over More 6. 20 p %re Inde cisep lye,n this dent re liv sping onse d iff op ic tion ultyw — as ,B “A ecaw us ork e p of lac ae p re hy tir siecme al, nt me sa nt va ing l, s or p la em n,ot suc iona h a l p s r aob 401( lem k, ),ha tavxing -defe diff rre icd ult ay nn d uity oing o r Figure Figure 147 Types of Debt Outstanding In addition to differences in assets starting retirement, disability-affected retirees were more likely to report that their than non-disability-affected retirees (73 percent). or a disabPr ilitev y, not alence relateof d tDisability o COVID-19 .by ” Race Among Population Age 65 and Over Source: U.S. Census Bureau, Ameri can Community Survey. 2021 ACS 1-Year Estimates. Total Civilian Noninstitutionalized Population. 15% 14% 403(b), thrift errands saving alone s, mo su ne cHow h a y purc s v Easy is ha itsin e,g o a or Diff r d pro ocfit tExpectatio or -s icult ’ha s offic ring Is It f e p lor an” n sh or to of op the Y p Retirement ou in g q ue . to s tion Do t “To he A w ge Fo hat llow extent ing are ...? the following sources of • Fifty-seven percent of disability-affected retirees spend less than $2,000 each month as compared with 45 50% hous e 60 hold % ’s financial assets had lower media 13% n and average current values than non-disability-affected retirees. Non- Disability Affected Not Disability Affected Total 13% 11% income for you right now in retirement?” Figur es Very or Somew 45% hat Easy Neither Easy nor Hard Somewhat or Very Difficult Disability was also correlated with lower levels of well-being across the measures of alignment, satisfaction, and percent of non-disability-aE ff ae rlic et re Tha d r ne Etxir pe ece te s. D d 9% isA ab boili ut tW y-ha eff n E ex cpte ecd te d retire Le ate s r Tha repn o E rtxe pd ec te spe d nding more on housing and disab •ili tyDi -aff se ac bil ted it y re in tirc eo em s ha e:d R 2.3 t etireim es ew s t ho heindic avea ra te gd e d cis ur arb eili nt t ya ins sseur ts of ance d is w aa bs ilia ty m -aa ffjor ec tor ed m re inor tire e sour s (Fi cg eur of e r9) et.ir Fr em om ent a n 54% 10% Figure 3 100% 8% Figure 1 45% 6% st andard of living. Disability-affecte 7% d retirees were more than twice as likely to say their current life in retirement had 5 out-of-pocket medical costs and less on entertainment and other expenses compared with non-disability- income through a multiple-choice question. This also in5% clude 10% s retirees who wrote in “disability” 10% as an income inc Be om ard ee p ne , rBri spe dg ce tiv t, ePrev “2022 , disaalen b Sili pe ty nd - ce aing ffe of c in t e Disab R de rtire etir me e ilit ent s yw SHist e urve re m y orical, :or Un e d lik ers e ly by ta nd t o A ing ha ge vthe ean a nnu Pd and G ae l house en mic de ’s r Imp , hold Aa ll c inc t, Civ ” om EB ilian R eI s Is le s sss ue t Bri han $3 ef, no 0,00 . 572 0 5% U.S. Population, Ages 65 and 4% Over, by Number of Disabilities 15% Figure 1, U.S. Population, Ages 65 and Over, by Number of Disabilities (in Millions) ................................ 15% ................... 4 100% 3% 6 18% 2% 50 90% % low alignm 40% ent with expectations (26 percent) compared with those not affected by disability (12 percent). They were 1% affected retirees. 38% 1% 1% 1% 1%1%1% 1%1% source in the open-ended question, “Do you have any other sources of income not0% specified previously 1% ?” ( (Emp 38 ploy ercee ent Be ) ne com fit pR aers ee da rc wh ith In ts hose titutew , Oc ho to wbeerr e 6, not 2022) disa.b (iili nt y M a ilff lie ocn te s) d (25 percent). 37% 0% 37% 0% 15% 35 to 64 Years — Male 35 to 64 Years — Female 36% 35%7 40 Disability Affected 74% 22% 4% 0% also tw 90 ic % e as likely to report low levels of satisfaction with life in retirement (17 percent) than those not affected by Figure 2, Prevalence of Disability, Ages 65 and Over by Gender, All C 18% ivilians, 2021 ..................................................... 5 80% 20% 6 35% With One Type of Disability With Two or More Types of Disability No Disability Less Than $1,000 to $2,00 65 0 t to o 74$ Y 3ea ,00 rs 0 t — o Ma$ le4,000 to $5,000 to $65 6,0 to 0074 to Yea $r7 s,0 — 00 F tem o ale $8,000 to $9,000 to $10,000 or Responding 1, 2, or 3 on a scale of 1–10, where 1 is “not at all aligned” and 10 is “very aligned,” to the question “How 20% 40% • Disabili 32% ty-affected retirees were more likely (36 percent) to feel their current spending 32% level is higher than they • Disabled working status: Retirees and spouses with a working status of “disabled and unable to work.” disability (8 percent). In addition, 43 percent of disability-affected retirees said their standard of living is lower in $1,000 $1,999 $2,999 $3,999 $4,999 $5,999 $6,999 $7,999 $8,999 $9,999 More 25% 21% 40 80 35 % % 70% 75 Years and Over — Male 75 Years and Over — Female Fi gure 3, Prevalence of Disability Historical, by Age and Gender, All Civilians .............................................................. 5 aligned is your current life in retirement with how yo 29% u expected/planned for your life in retirement to be?” 30% can afford as compared with non-disability-affected retirees (24 percent). r etirement than w 36% hen they were working vs. non-disability-affected retirees (29 percent). Disability-affected retirees Figure 9 Source: EBRI’s 2022 Spending in Retirement Survey. Using 7 the 0% above criteria, the disability-affected sample analyzed herein reflects a directional proxy for retirees with a 60% 33% 7 30 were three times more likely to beC see urr ken ing t tV re al au tm e eo nt f H for o u dse eprh eo ss ld ion/ Fia nnxi aneci tyal (2 A 7 p sseet rcs ent) vs. non-disability-affected Fi R ge ur sp eo 4, ndP ing re v 1, a le 2,nc oe r 3 of on Dis a asb cili ale ty oT f y1p–e10, Am wong here P 1 op isula “vteion Age ry dissa tis 65fie ad nd ” aOv nde 10 r ................................ is “very satisfied,” to the ............................... question “How 6 25% 30% • Disability-affected retirees were more likely to report difficulty with budgeting decisions as compared with non- disability. 29% r se at tis ire fie e 30 s (9 d % are p y eo rc u ew nt ith ). your life in retirement?” Total Disability Affected Not Disability Affected 50% 60% 25 Not Disability Affected 49% 46% 4% Figure 5, Prevalence of Disability by Race Among Population Age 65 and Over ........................................................... 6 20%disability-affected retirees. On average, 1 in 6 disability-affected retirees reported difficulty making budgeting 25% Average $531,879 $267,165 $622,390 23% 23% 40% 50% 78% Disabilityd -a eff cis ec ions ted c ro et m irp ea ers erde p wor ith 1 ted in 10 non spending -m dis or ae b ili on ty- ho aff 22% us ec ing teda rnd etirout ees. -of -pocket medical costs than non-disability- 25.4 In addition, race appears to play a role with respect to disability. Sixteen percent of Black retirees were disability 20 Median $145,672 72% $55,000 $200,000 15% 70% Figure 6, Perception of the Amount Saved for Retirement ......................................................................................... 8 65% Tr ansitioning Into Retirement 20% affected retirees (Figure 13). Disability-affected retirees also reported spending less on entertainment and other a ffect30 ed % vs. 7.7 percent of non-Black retirees. Simila 60% rly, 12.8 percent of Hispanic retire 60% es in the sample were disability 40% Source: EBRI’s 2022 Spending in Retirement Survey. 11.5 15 • Disability was also correlated with lower levels of well-being across the measures of alignment, satisfaction, 10% e For Fixpe gur the ns e 7 e ir, s c tE ra xpe om nsp it ca t ion i a re tion o dnt wo itf Re h renon tirte irm e -d m e is nt eant b , ili d A is tg ya -eb a ................................ ili ffe ty c-ta eff de rcetteirde e re s. tirIe nt ee s rw e................................ st eringly e mor , d ee lik spit ely e tthe o sa inc y................................ rte he ase y re in lie the d on pr e frv ie ands lenc ................. a end of family 8 affected compared with 7.2 percent of non-Hispanic retirees. 20% 30% and standard of living. In addition, disability-affected re11% tirees were three times more likely to be seeking a (21 mb p ula ert cor ent y )d a iff nd icult otie he s rw sour ith a cg ee s ,( t 10 he p re e rw ce ent re) no foro sour bserc ve es of d diff inf eror enc ma ets r ion e la on tivter atns o tit rionin anspg or tto atrion e etirexpe ment ns e cs. om D pis aa re bd ili tw yit - h 5% 10 Total 55% 9% 40% 4% Figure 8, Assets Held When Starting Retirement ...................................................................................................... 9 10% 8% 10% treatment for depression/anxiety (27 percent) than non-disability-affec7% ted retirees (9 percent). 20% 7% a non ffe- cd te isda b re ilittir ye -a eff s e w ce te re d a re lsto ire m eor s (e15 likp ee lyr cte o nt re a pnd ort 5 p theeirr che ent alt , h ca re spe rec tne ive ely ds c ). A re m ao te ng d a the si gdni isfic a 6% baili nt ty une -affe xpe ctecd te rd e te irxpe ees w nse ho in With respect to living situation, disability-affected retirees were more likely to be renting (26 percent) compared with 5.9 3.6 4% 0% 5 3% Conclusion w r Fi er g tot ir ur e ee m in 0% 9 e, nt “C Ot ur (39 he re rnt p ”,e rm Va ce elue nt dic ) a of tl p ha H rnofe ouseho those ssiona ld who ls Fi na aw nd nc ert e ia he l As not Soc set dis ia sal Se ................................ bilitcyur ait ffye A ctd em d ini (22 st rp ae tion w rc ................................ ent)e.r e frequently me.............................. ntioned sources of 9 non -disability-affected retirees (18 percent). Similarly, disability-affected retirees were less likely to own their home free 2% White Alone Black or African American Asian Alone Native Some Other Two or More White Alone, Hispanic or 10% All of these staEBRI Is tistics t suog e Bri etehe f is re r sh gist ow ere d tha in t th d e is Ua .Sb . ili Patty en ha t ans a d Tr st adr eong mark im Offp ica ec . t IS on SN:indiv 0887 – idua 137X ls /9’ 0a 0b 8ili 87 tie –1s t 37X o/ 9m 0 $ a na .50g +.e 5 0t heir 1% finances 4.4 0% Disability affected Not disability affected Disability affected Not disability affected Disability3.9 affected Not disability affected American Alone Indian and Hawaiian and Race Alone Races Not Hispanic or Latino (of any information. Disability-affected retirees were less likely to rely on a personal, professional financial advisor (22 percent) The comparative statistics portray a dim picture of being affected by disability in retirement. Disability-affected retirees and cle 0% ar of a mortgage (35 percent) as opposed to non-disability-affected retirees (50 percent). 0 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Alaska Native Other Pacific Latino race) © 2023, Employee Benefit Research Institute —Education and Research Fund. All rights reserved. a Find gurce ov 10 er, De e Dxp e termi sc ens rne ipti e W s on hw at hil of Mon eD eae yls Ib so t A Ma v tai ak lab na ing leg fo e a ra Y t b ou oll o ili t toy n th ................................ Dece ide ir ov Whe ere Y rall ou w r S ell pe -b nde ing ing. ................................ Mo n E ey m W ploy ill ers a Estind mate be Wne ................................ hat K fitis p nd of rov Lifes ide tylr e Y s c ou a Can n im......... prove 10 0% Credit Card Debt Mortgage Debt Car Loan Medical Debt Home Equity Loan Student Loans Business Loan 65 to 74 Years 75 Years and Over Alone Islander Alone compared with non-disability-affected retirees (32 percent). have less financial resourS cpen es, m d ore credit card and medicCo al d mee Fr bt om , less confidence in their decis Aion ma fford king, and less 2011 2012 2013 2014 2015 2016 2017 2018 2019 2021 outcomes and quality of life in retirement for those affected by disability by being inclusive in programs and Source: EBRI’s 2022 Spending in Retirement Survey. SourcSo e: u U.S. rce: Cen EBRI’ sus s 2 Bu 02 re 2a Sp u, e Am nde inri gc ia nn Ret Com irem mu en nity t Su Su rv rv ee yy . . 2021 ACS 1-Year Estimates. Total Civilian Noninstitutionalized Population. Figure 11, Types of Debt Outstanding ................................................................................................................... 10 satisfaction with life in retirement than their non-disability-affected counterparts. Given the prevalence of disability Source: U.S. Census Bureau, American Community Survey. 2021 ACS 1-Year Estimates. Total Civilian Noninstitutionalized Population. Source: U.S. Census Bureau, American Community Survey. 2021 ACS 1-Year Estimates. Total Civilian Noninstitutionalized Population. Source: EBRI’s 2022 Spending in Retirement Survey. communications. e e e e e e e e e e e e eb b b b b b b b b b b b br r r r r r r r r r r r ri. i. i. i. i. i. i. i. i. i. i. i. i.o o o o o o o o o o o o or r r r r r r r r r r r rg g g g g g g g g g g g g IIIIIIIIIIIIIs s s s s s s s s s s s ss s s s s s s s s s s s su u u u u u u u u u u u ue e e e e e e e e e e e e B B B B B B B B B B B B Br r r r r r r r r r r r rief ief ief ief ief ief ief ief ief ief ief ief ief A re • • • • • • • • • • • • • s e A A A A A A A A A A A A Aa p p p p p p p p p p p p prr r r r r r r r r r r r rc il il il il il il il il il il il il ilh 20 20 20 20 20 20 20 20 20 20 20 20 20 re,,,,,,,,,,,,,p 2 2 2 2 2 2 2 2 2 2 2 2 2 o0 0 0 0 0 0 0 0 0 0 0 0 0 r2 2 2 2 2 2 2 2 2 2 2 2 2 t 3 3 3 3 3 3 3 3 3 3 3 3 3 fr o• • • • • • • • • • • • • m N N N N N N N N N N N N N to o o o o o o o o o o o o h.............e 5 5 5 5 5 5 5 5 5 5 5 5 5 E 83 83 83 83 83 83 83 83 83 83 83 83 83 B RI Education and R esearch Fund © 2023 Employee Benefit Research Institute 10 12 11 13 14 4 5 8 7 9 2 3 6