Debt problems are no longer the domain of young families striving for the American Dream. More and more, America’s seniors are facing serious debt overloads just at the time that they should be able to live out their days with little stress.
According to recent statistics from the Employee Benefits Research Institute (EBRI), senior citizens are one of the fastest growing demographic group filing for personal bankruptcy. In recent studies, EBRI cites the average amount of debt for households age 75 or older as $23,234.
People are living longer now and may be retired many more years than previous generations. What may have seemed like a good retirement “nest egg” when in the planning stage, might not be enough to see them through years that often include higher healthcare costs as well as expenses. Investments made during their working stage, may have also suffered the blow of the recession and resulted in smaller retirement savings than was originally planned for. Living on a fixed income often greatly reduces the quality of life, just when that quality is most needed and deserved.
In many cases it may become necessary for our older Americans to turn to their adult children for help and support and with the United States still slowly recovering from the great recession, the same adult children are often battling their own debt problems. The emotional impact of no longer being able to live as they planned can be overwhelming for both the senior parent and their children. Without the option of increasing income, bankruptcy can easily seem like the only alternative.
