If you are one of the many baby boomers in Tennessee, you might be retired already or perhaps you are eyeing the possibility of retirement soon. At the same time, however, you may be experiencing a financial situation that is far from what you once had planned for yourself at this time in your life.
Money and Markets reported on the findings from a study conducted by the Consumer Bankruptcy Project that sheds light on the growing debt problem for people who are 65 and older. People in the age bracket of 65 and up have seen their median level of debt double between 2001 and 2013. Additionally, this group now represents more than 12 percent of all bankruptcy filers compared to two percent in 1991.
Social security benefits no longer cover as much of a person’s pre-retirement income as they once did. This reduced income happens when people are faced with increased out-of-pocket medical costs. The shift away from pensions and to 401K plans may also contribute to less money on which to live during retirement. Those who may want to re-enter the workforce often find that difficult given their age, especially if they have not worked for a few years. Jobs available to them may not pay enough to meet their financial needs.
This information is not intended to provide legal advice but is instead meant to give residents in Tennessee an overview of the various factors that are contributing to financial problems for the baby boom generation and leading to an increase in the number of bankruptcy filings among boomers.