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  • msf January 2020
  • Sven January 2020
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Seniors Deal With Harsh Reality of Debt

edited January 2020 in Off-Topic
“ Paying off debt is a financial priority for 4 out of 10 retirees, according to a survey by the Transamerica Center for Retirement Studies. That includes 29% grappling with credit-card debt, 17% still paying off a mortgage, 11% dealing with other consumer debt like medical bills or student loans, and some coping with a combination. “

https://www.reuters.com/article/us-money-retirement-debt/seniors-deal-with-the-harsh-reality-of-debt-idUSKBN1ZS2DK

Comments

  • Truly sad - student loan!
  • From SSA, 2017 (using 2015 data):

    "We find that about half of the population aged 65 or older live in households that receive at least 50 percent of their family income from Social Security benefits and about 25 percent of aged households rely on Social Security benefits for at least 90 percent of their family income."
    https://www.ssa.gov/policy/docs/ssb/v77n2/v77n2p1.html

    With or without a debt burden, the 25% of people relying almost exclusively on SS are going to have a hard time making ends meet.
  • These folks have to work part time in their retirement to supplement their SS. Many of them had their pension reduced when their former employers restructured their payout. Even when define contribution plan became available many did not save enough.
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