The Debt Burden Facing Retirees
The Annuity Man
Great article and insight from by Dorothy Hinchcliff, editor of Advisor Perspectives about the debt burden facing retirees. Even though it's written for the advisor to better address their clients needs, I thought it was a good read for consumers as well.
Direct from the article: "Little attention has been given to helping people over age 50 manage and understand debt, but it is just as crucial to retirement security as savings. That was among the key insights from a new working paper funded by the TIAA Institute and the Pension Research Council at The Wharton School of the University of Pennsylvania.
Per capita personal debt in the U.S. fell after the financial crisis, but has been growing since 2014. Older Americans increasingly are likely to carry debt into retirement, notes the paper, “Understanding Debt in the Older Population.” The paper’s authors are Annamaria Lusardi, a professor at The George Washington University School of Business; Olivia S. Mitchell, a professor at the Wharton School at the University of Pennsylvania; and Noemi Oggero, a post-doctorate fellow at the University of Turin in Torino, Italy."
I recommend you hit that link to the research paper "Understanding Debt in the Older Population." Once again, this article and site (Advisor Perspectives) is written for the people that are selling to the consumer...but it crosses over to consumers as well.
Regardless of age, debt can be suffocating and stressful. It's common sense that we all should make sure that our debt load is manageable and in proportion to our overall net worth. That's easier said that done, but a goal that everyone should have.