As we near the retirement, the common wisdom says that we should be having less and less debt. However, new study shows that the trend among Americans in this age category is reversing. This is, from the point of view of personal finance, troubling reversal. Now, more than ever, Americans nearing retirement upgrade the houses, with even smaller down payments resulting in high mortgage payments. One positive finding from the study shows that financial literacy leads to better retirement preparedness.
Key Takeaways:
- Studies have shown a troubling trend that people in their 50s and 60s are accumulating more and more debt as they get closer to retirement.
- A major concern comes with debt from mortgages as older Americans don’t have as much room to ride out negative income shocks.
- The most vulnerable groups tended to be African Americans, women and people who have very little education.
“The burden is leaving them stressed, harassed by bill collectors, and worried about their financial future as the clock ticks down on their income-earning years.”
Read more: https://knowledge.wharton.upenn.edu/article/why-older-americans-are-taking-on-more-debt/
Leave a Reply