More Americans Than Ever Are Entering Retirement with Debt

Determining what you’ll do with your assets is a common concern for anyone near retirement- whether it’s ensuring that your savings will stretch for your own needs or or to pass on to loved ones, financial concerns are chief for retirees. A new study shows, however, that debt may factor into retirement planning for a lot of people aged 65 and beyond. 

Debt is a serious problem across the entire country but a new study found that the percentage of people between the ages of 56 and 61 with mortgage debt has increased by 8 percentage points. The baseline group was 41% but this has jumped to 49%. When compared with past decades, according to research conducted by the National Bureau of Economic Research, older people today are more likely to enter retirement with long term debt such a mortgage than those in the past.

Very little work has been done in the academic field to evaluate the debt of older Americans or their level of indebtedness as they get closer to retirement. The study looked at 381 metropolitan areas for elderly adults looking at matrix based on an active retirement. The paper looked at three different cohorts to identify changes in debt over time. The value of debt held by those approaching retirement increased dramatically in recent years. If you or someone you know needs assistance with planning for retirement and ensuring that all of your assets are properly protected, consult with an experienced estate planning lawyer today.


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