According to some new research from the Employee Benefit Research Institute the percentage of older individuals with debt has been increasing over the past 10 years, in particular for those 75 and over.
The group issued a new analysis of Federal Reserve figures showing that close to 50% of retirees ages 75 and up now have some loans outstanding – up from 25% back in 1992 – with the most significant debt increases coming among lower-income seniors.
The median debt owed by this age group ($20, 900) is below the average debts owed by Americans at younger ages. Yet debt can be a significant issue for the 75+ community considering the lack of opportunities to boost their incomes.
This article examines what’s causing this debt trend, the consequences and points out some solutions including reverse mortgages to help lock in some steady income during retirement years.