Boomers Saddled with Rising Debt Face a Tough Retirement
The patterns and type of debt amongst older Americans has changed significantly over the past few years. According to the Federal Reserve Bank of New York, the average 65-year old borrower has 47% more mortgage debt and 29% more auto debt than 65-year olds had in 2003.
It is not only home-secured debt or cars that are causing Boomers to owe large sums of money. Over a decade ago, student debt was not something that a person of 65 had to think about. Today it’s a growing concern for boomers, as they find they have to remain in the workplace longer.
Getting an education, or learning new skills for the marketplace, is essential for older folk looking for employment. According to Bureau of Labor Statistics data, the proportion of men between ages 62 and 64 who are working or looking for work increased from 45% in 1994 to 56% in 2014. Women are also finding themselves still working or looking for employment, when they should be thinking about retiring. In fact, the number of women in the same age group either working or seeking jobs increased even more than their male counterparts – from 33% to 45% over the same time period.
Planning for retirement should include paying off all debts. Unfortunately, many Boomers don’t have that choice anymore, as they need to enter a competitive job market when they thought that they would be retiring. Talk to your investment counselor, and see how to devise a plan that can help make your retirement stress free.
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