Full Breakdown
Older Americans Trim Grocery Budgets as Prices Rise
By Drooid · · How we work
Core Findings
A new AARP study of 1,017 adults aged 50-64, surveyed from July 16 through July 20, shows that 41 % reduced grocery spending in the prior month. The cut-back rate is higher among those 50-64 (45 %) than among adults 65 and older (38 %). The same research indicates that discretionary expenses such as dining out (58 %), entertainment (52 %), clothing (47 %) and hobbies (42 %) have also been curtailed.
Background & Context
The survey, released in September, is part of a broader look at how older Americans are coping with rising everyday costs. Housing-related outlays—including homeowners insurance, property taxes and maintenance—have climbed, squeezing household budgets that already allocate a large share to food.
Data Snapshot
- 41 % of adults 50-64 cut grocery spending in the last month.
- 45 % of the 50-64 group reported grocery cut-backs, versus 38 % of those 65+.
- 58 % scaled back dining out; 52 % reduced entertainment spending.
- If monthly household income fell by 5 %, 61 % would dip into savings, >33 % would use credit cards, and 45 % would seek cheaper alternatives.
Verbatim Quotes
- “Those are all meaningful expenses and are things I think many people wouldn’t really define as luxuries,” — Christopher Mayer, retirement economist
- “You have people who are trying to pay for homeowners insurance, and the cost of being a homeowner has gone up a lot,” — Christopher Mayer, retirement economist
- “More people are not paying for homeowners insurance,” — Christopher Mayer, retirement economist
Implications for Household Finances
Retirement economist Christopher Mayer notes that food is not a luxury but a “meaningful expense,” and the pressure to cut groceries can force older homeowners to forgo other essential costs, such as homeowners insurance. For those with substantial home equity, Mayer suggests equity may become a fallback within a broader retirement strategy, yet the risk of losing that safety net during events like hurricanes remains a concern. The reliance on savings and credit cards also signals reduced financial resilience among older adults facing ongoing price pressures.