A new report examining the debt of older Americans reveals that seniors aged 75 and older have incurred a substantial increase in debt between the years of 2007 and 2010.
The report, compiled by researchers from the Employee Benefit Research Institute (EBRI), shows an increase both the number of older seniors with debt, and the total amount of debt they have accumulated.
The percentage of seniors aged 75 and older who had debt grew from 31.2 percent in 2007, the year the US began to fall into recession, to 38.5 percent in 2010. The average amount of debt also more than doubled, from $13,665 in 2007 to $27,409 in 2010.
EBRI’s senior research associate Craig Copeland believes the likely cause of debt in older seniors is medical expenses. Although most older Americans are covered by Medicare, Copeland noted that many are still responsible for co-pays and other out-of-pocket expenses, such as expensive medications that are not fully covered. And since most Americans age 75 and older are living on fixed retirement income, they have little choice but to take on debt to pay for a large, unexpected expense.
Another culprit is housing debt. The number of families with heads age 75 or older who owed housing debt increased from 10 percent in 1992 to 24 percent in 2010. However, the report also shows the percentages of families with housing debt increased significantly across all age groups, pointing to an alarming trend for those approaching retirement age.
Copeland concluded that “the debt results are troubling as far as future retirement preparedness is concerned, in that the data indicate that American families approaching retirement or newly retired are more likely to have debt—and higher levels of debt—than past generations.”
Read the articles: Not-So-Golden Years: Over 75, Burdened By Debt, Housing Key Driver of Spiking Debt Among Older Households, or view the full report: Debt of the Elderly and Near Elderly, 1992–2010.
Business Planning, CEO, cheatsheet, Facts and Figures, Human Resources, Organization Development, Professional Development, Reports, Staffing & Performance
The senior living industry will need to recruit 1.2 million new employees by 2025 and must be poised to create working environments and career paths a...
cheatsheet, Consumer Intelligence, Facts and Figures, Financing Senior Living – Consumer Education, Health Care, Medicare, Reports
The Congressional Budget Office recently released projections showing Medicare enrollment is expected to grow by more than 30 percent within the next ...
Facts and Figures, Memory Care Best Practices and Research, Memory Care Education, Reports
Eating more seafood is not linked to a likelihood of developing Alzheimer’s disease and in fact may help in preventing cognitive decline, according to...
At a time when assistive technology devices are being developed to assist aging seniors, family caregivers continue to rely on people and online infor...
CEO, cheatsheet, Facts and Figures, Human Resources, Organization Development, Reports, Staffing & Performance
Four years into a grant program enabling states to implement background check programs for long-term care employees, a new government study has found ...