More baby boomers are entering their retirement years owing far more on their homes, cars and even college loans than previous generations. According to a recent article in The Wall Street Journal, “Baby Boomers Pile On the Debt”, since 2003, the average 65 year old has 47% more mortgage debt and 29% more auto debt than 65 year olds had in 2003. Student debt – previously unheard for seniors – is on the rise.
This is an alarming trend with potentially serious consequences. As more and more baby boomers are retiring without pension plans and limited 401(k) balances, having to rely primarily on Social Security income to pay their living expenses as well as debt payments is likely to be a significant challenge.
Imagine retiring at age 65 and having only your Social Security income to make a mortgage payment, buy groceries, pay utilities, property taxes, home and auto insurance, gas for your vehicle and medical premiums and other expenses. It sure doesn’t sound like the “golden years” to me. Don’t let this happen to you.