Thursday, May 9, 2013

Taking Debt Into Retirement

One thing everyone hopes for in retirement is that their financial worries would be over, or at least dwindling away. That's what is so unnerving about a recent study from the Securian Financial Group: It seems that more than half of all the people surveyed expect to retire with at least $25,000 in debt. A third expect their debt level to be higher than their assets at the time they retire.

One big factor in that is all the outstanding mortgage debt that people will carry. Two thirds of all people surveyed expect to carry a mortgage into their retirement years. The recession has had a huge effect on that number; as recently as 2009, just 30 percent expected to do so.

The good news is that people know that this is not the right way to be headed into retirement. More than half of the pre-retirees surveyed said they understand that debt in retirement should be avoided at nearly all costs.


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