4. The number of seniors declaring bankruptcy has grown to 7%
In 1991, only 2.1% of those filing for bankruptcy were 65 or older. This number climbed to 7% by 2007, a scary number considering the limited options seniors have to make money. The Employee Benefit Research Institute notes “without a job or income stream to convince lenders otherwise, you may have a hard time opening credit cards, securing transportation, or renting a home as a senior.”
Next: Don’t make Social Security your one and only plan.
5. By 2033, Social Security will need to be cut by 23%
- Social Security is the most commonly cited source of income for retirees.
Nobody knows what Social Security will look like in a few decades. Without reform, benefits will need to be cut by 23% in aggregate in 2033, according to the Social Security Administration. In other words, after the depletion of reserves, tax income will only be able to pay 77% of scheduled benefits in 2033. This is scary, considering Social Security keeps nearly 27 million Americans above the poverty threshold, as estimated by the Economic Policy Institute.
Next: No one should retire with mortgage debt, right?
6. Nearly one-third of homeowners of retiring age still have mortgage debt.
- Homeowners 75 and older with debt skyrocketed from 8.4% to 21.2%.
Most financial planners recommend their clients pay off the mortgage on their house before they retire. However, from 2001 to 2011, the percentage of homeowners of retiring age who still have mortgage debt has increased from 22% to 30%.
Next: Forced retirement doesn’t just happen to professional athletes.