Senior citizens in the United States may not be able to maintain the comfortable retirement lifestyle they imagined they would have. A recent report from the Employee Benefit Research Institute shows that older American families are suffering debt consolidation woes right alongside their younger, more financially able, neighbors. Housing and consumer debt levels among this group have been steadily rising.
The EBRI study reports that 63 percent of American families with a head of household over the age of 54 were carrying some level of debt in 2007. That figure is almost 3 percent higher than the levels recorded in 2004 and a large 10 percent higher than the figures in 1992. The debt level was higher among those 55 –64 who were just nearing retirement age.
With the baby boomer generation reaching retirement age the percentage of American families with a head of household above age 54 has grown and will continue to grow. As this section of the population increases so will the amount of debt shouldered by older Americans. The amount of debt carried by families with a head over age 54 was $32,191.00 (stated in 2007 dollars) in 1992 and more than doubled to $70,370.00 in 2007. The average amount of debt nearly tripled for older families over the same period of time from $15,923.00 to $43,000.00.
Housing debt is especially problematic among older Americans. A larger number of those reaching retirement age now were unable to purchase their own home as early as those in the generations before them. This leaves many still carrying mortgage debt. Housing ordinarily represents a major asset and tool for older Americans but by owing more and in a slow housing market, retirees may be unable to sell their home and profit enough to help finance their retirement. This may make it nearly impossible for this generation of older Americans to get out of consumer debt and fulfill their dreams of a comfortable retirement.
