Older Americans Dealing with Rising Debt, Falling Income Amid Pandemic
According to the Employee Benefit Research Institute, the share of households headed by someone 55 or older with debt — from credit cards, mortgages, medical bills and student loans — increased to 68.4 percent in 2019, from 53.8 percent in 1992. Bankruptcy rates among older adults are also rising. The COVID-19 pandemic may be adding to their woes, the New York Times reported. A survey at the end of 2020 by Clever, an online service that connects home buyers and sellers with real estate agents, found that on average, retirees had doubled their non-mortgage debt in 2020 — to $19,200. Francesca Ortegren, the data science and research product manager for Clever, said that business cutbacks had forced many older adults to retire earlier than planned. Others left work for health reasons or to care for family members, she said. “They had expected to have more time to save money,” Dr. Ortegren said. “They are putting their expenses on their credit cards and are carrying balances month to month.” Also driving this rising debt load are soaring medical costs, the steep decline in pensions, growing housing expenses and low interest rates on savings. To make ends meet, many older adults are known to skip meals and cut pills to stretch prescriptions, according to a survey by the National Council on Aging. [reported by American Bankruptcy Institute 4/22/21 e-newsletter]