Boomers and Debt
Debt is not something to take lightly. Patterns in debt and the type of debt that an older generation is finding itself in has changed over the past few years. In fact, it seems that Boomers are more in debt than they were 13 years ago.
According to the Federal Reserve Bank of New York, the average 65-year old borrower has 47% more mortgage debt and 29% more auto debt than 65-year olds had in 2003. It is not only home secured debt or cars that are causing Boomers to owe large sums of money. Over a decade ago, student debt was not something that a person of 65 had to think about. Today, however, it is a growing concern.
Getting an education or learning new skills for the marketplace is essential for folks who are finding that they need to stay employed longer. According to Bureau of Labor Statistics data, the proportion of men between ages 62 and 64 who are working or looking for work increased from 45% in 1994 to 56% in 2014. Women are also finding themselves still working or looking for employment when they should be thinking about retiring. In fact, the number of women in the same age group, either working or seeking jobs, increased even more than their male counterparts from 33% to 45% over the same time period.
Dealing with debt and maintaining a healthy lifestyle can be difficult. Changes in interest rates and unforeseen events can cause more stress and could significantly impact your life. Making certain that you can pay off your debts, or even better to live debt free, is far better than living with crippling debt. Many do not have that choice anymore as they need to enter a competitive job market when they thought that they would be retiring.
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Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Teaneck and Princeton, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 516-921-4200 Visit our website: www.davidlerner.com
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