Recent surveys are showing that while overall poverty rates in the United States are falling, they are rising for Americans over age 65.
According to the latest U.S. Census Bureau data, the share of older people (over 65) living below the poverty line rose to 10.3% in 2021, up from 8.9% in 2020. The increase means that an additional 1 million older adults have fallen below the poverty threshold, bringing the total number of seniors in that unfortunate category to nearly 6 million, according to an analysis by the National Council on Aging (NCOA).
Another organization, The Senior Citizens League, a Washington-based advocacy group, ...
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Four Dangers of Debt Consolidation
Debt consolidation can be a great way to lower your monthly payments, reduce your interest cost, and simplify the process of paying back what you owe. But, consolidation isn't always the right choice -- and it isn't necessarily a risk-free process.
To make sure debt consolidation doesn't make your situation worse, it's important to understand the dangers so you can make an informed choice about whether consolidating your outstanding debt makes sense for you. Here are four major risks associated with the process that you'll want to mitigate if you plan to take this approach.
1. Going deeper into debt
One of the biggest risks of ...
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Start Off Right – 12 Financial Tips That Can Last A Lifetime
When you enter your 20s, you try to figure out life and (hopefully) learn from your mistakes. For many, it’s the first time they’re faced with dealing with finances completely on their own.
You may be taking out student loans or trying to pay them off. You’re learning to manage credit cards and pay your bills, and you’re entering the workforce. What you do with your money in your 20s -- your saving and spending habits, and the debt you incur -- will stay with you into your 30s and beyond.
Penny-pinching and living within a budget aren't fun, but it’s a whole lot better than finding yourself swimming in debt and stressed about money. If ...
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Baby Boomers Far From Debt-Free In Retirement
Two or three decades ago, it was a foregone conclusion that people would be debt-free upon retirement. Student loans, mortgage debt, car payments—those were the concerns of younger individuals, barriers to entry to the golden years of life. Unfortunately, times have changed.
Per capita, debt among 65-year-olds increased by 48% between 2003 and 2015, according to the Federal Reserve Bank of New York.
Of all types of debt, student loans were the biggest culprit, with the per-capita student loan burden increasing 886% for 65-year-olds during that time frame. Second to student loans was mortgage debt, increasing 47% for those approaching ...
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Social Security Benefits Sooner Rather Than Later – Not a Bad Idea
Though your Social Security benefits are calculated based on what you earned during your career, the age at which you first file for them can impact your ultimate payout. If you claim benefits at full retirement age (FRA), which, for today's workers, is 66, 67, or somewhere in between, you'll get the exact amount you're entitled to based on your earnings history. However, if you hold off past FRA, you'll boost your payments by 8% a year, up until age 70.
Now, on the one hand, that's a pretty good deal, because you're basically getting a risk-free 8% return on your money by waiting until age 70. On the other hand, filing for Social Security ...
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Are Guarantees of Student Loans Changing The Retirement Landscape?
If you think student loan debt is a problem for the younger generation, think again. According to the Consumer Financial Protection Bureau (CFPB), about 2.8 million people age 60 and older have outstanding student loans – four times the number in 2005. Most of the current student-loan debts of people 60-plus were incurred paying for college for a child or grandchild, and in the past decade, for the 60 to 64 age group, student-loan debt has increased eight-fold – to $38 billion!
“Americans in their 60s are now the fastest-growing age group facing student loan debt,” says Andrew Anable, a financial planner at Safeguard Investment Advisory ...
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Mortgage Debt and Retirement
Lucky are those at retirement age that have their home paid up in full. This helps the retiree achieve peace of mind and a new future to look forward to. But for those who still have a balance with their mortgage company, their dream of living free of debt at retirement could be only a pipe dream.
The Consumer Financial Protection Bureau maintains statistics and one of these statistics record the number of people who have not paid off their mortgage by retirement age. In 2011, 30% of property owners who reached 65 still owed payments on their mortgage. This is an eight point rise from 22% in 2001. Senior citizens also saw an increase in ...
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Common Myths About Saving for Retirement
It goes without saying that one should plan early for their retirement nest egg and for those lucky enough to be working for a firm that provides an IRA or compatible retirement plan, you are off to a good start. For those that do not have a retirement plan with their employer or you are in business for yourself, there are many options available to you as well. According to a study by the Economic Policy Institute, the average family puts away only $5,000 for retirement and 43% of Americans don’t have any retirement savings at all. These statistics can be scary. What leads people to shy away from investing in their future are many. Here are a ...
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Seniors Struggling With Debt Likely To File For Bankruptcy
Older Americans are being squeezed in many ways. Healthcare and other basic expenses are rising. Fewer have pensions to supplement their Social Security income in retirement. Low interest rates mean what savings they do have isn’t growing quickly — unless they are willing to invest in higher-risk financial products.
And then there’s the other side of the equation: Credit and Debt. Many seniors have not properly planned for retirement financially. Many have used credit cards freely in the earlier stages of retirement to maintain their pre-retirement lifestyle without a plan on how to repay it.
Older Americans are increasingly struggling ...
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Parent Guarantees of Student Loans – Love Your Children, But Don’t Sign For Them!
In the recent past, I have seen a trend develop that, even as a parent, I find extremely disturbing - parents seeking bankruptcy protection in mid-life or in preparation for retirement that will remain saddled with their children’s student loan obligations long after they have discharged of their other debts.
Here’s an example: A couple in their early-mid 50's that rent an apartment, with a combined income of in excess of $80,000 per year has $50,000 in credit card debt. In addition, while their child was in college, they co-signed for an additional $50,000 in student loans. Their child, now is his/her late 20's, is having difficulty ...
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