One of the challenges that financial planners deal with baby boomers approaching their actual [hopefully] retirement dates is related to helping them solve their huge debt burden. For Americans, taking on debt has always been a reality in life, because taking out loans to pay for "finer things" in life has not only become more fashionable, but has become a standard practice. For example, there are many people who want to eradicate mortgages before they actually retire. The desire to continue to improve the size and quality of a person's home and the temptation to accumulate equity in order to buy this or that has already caused the mortgage to retire. Many people are now entering their golden years.
Well, it turns out that people who are close to retirement are not just mortgages, car loans and credit card balances, but they can also be part of their financial situation. Add education-related debt to the list. Yes, I said education debt. But this is not what you are thinking about. I am not talking about the baby boomers who are still struggling to repay their school loans as undergraduates, or even the loans they have recently decided to return to college as working adults. Education-related debt associated with an increasing number of retirees and near-retirees relates to the loans they pay to help their children and grandchildren. from
its from
Education.
According to the LIMRA Safe Retirement Institute, adults between the ages of 65 and 74 are currently carrying from
Six times from
More education debt than 25 years ago. In recent decades, education-related debt has increased dramatically, and now accounts for about 15% of total pensions for retirees after retirement. For so-called retirees, between the ages of 55 and 64, the situation is even more ugly, and education debt now represents from
30%from
They are in arrears in the total amount of installment debt. The importance of these obligations will only exacerbate the financial difficulties currently facing retirees, who have included record-breaking other debts in fixed-income land.
The truth is that because the financial situation of many people in the United States is still very challenging, more people will have to rethink how they want to help young family members pay for higher education. Although on the one hand, many American seniors are very willing to bear this debt for the benefit of their children and grandchildren. The reality is that this is not a sustainable financial image that can enter retirement. Part of the answer may be that "experienced" family members and children have a broader discussion of how they should meet education-related costs. As young family members approach college age, grandparents may be better placed to make choices, such as two years of high school education at a state community college, or suggest that young people only need to work a few lessons a few times. Under such circumstances, students do not face huge school fees. If they are willing, parents and grandparents can contribute to the cost of education. This is only a single contribution, minus the ongoing obligation. In any case, the increasing debt burden of retirees cannot continue, so everyone in the family needs to take a more sensible approach to solving the cost problem...to avoid the heavy financial difficulties of all members.
The information contained herein is for general information only. Bob Yetman is not responsible for any liability or loss resulting from the use or direct or indirect use of any of the information provided herein. Nothing in this document should be construed as a solicitation or recommendation to participate in any financial transaction. You should seek advice from qualified professionals before making any changes to your personal finances.
Orignal From: Older people are putting record total education debt into retirement
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