Baby Boomers & Bankruptcy: Make Your Retirement Better.
by John G. Merna
A Lack of Retirement Savings Forces Many to Take Action
With over 75 million baby boomers in or approaching retirement, the disappearance of corporate retirement, failure of 401(k) plans to deliver great returns, and the recent Great Recession have left most unprepared to afford retirement. Baby boomers have acquired more debt while saving less than previous generations, which threatens their hope of maintaining their lifestyle in retirement.
For many, the smart answer is to look at removing the debt they have dragged into or towards retirement to free up cash to help afford a comfortable retirement. According to the Wall Street Journal and the Employee Benefit Research Institute, “People in the U.S. ages 65 to 74 hold more than five time the borrowing obligations Americans their age held two decades ago.” While at the same time the median savings for people nearing retirement has dropped 32 percent, according to the Economic Policy Institute.
The recent “Great Recession” contributed to families losing jobs, facing pay cuts, and seeing much of their wealth in real estate evaporate. Now with potential government changes to both Medicare and private insurance, retirees face looming increase in medical costs.
So what are some solutions? The first and most obvious is to stop the leaking or hemorrhaging of money on debt, primarily unsecured debt. Many baby boomers are mistakenly frightened of the concept of bankruptcy mostly out of ignorance of how it can help. In reality, debt burdened retirees use less or no credit and therefore have little to lose if faced with the temporary effect of having to go through credit recovery.
On the other hand, they stand to gain an enormous amount of income. Freeing up the monthly financial payments used towards unsecured debt can save most thousands of dollars per year and tens of thousands of dollars in retirement, you if not more. Bankruptcy is a great tool to help improve your prospects in retirement. Ask our current president. It is also easy to find out if a Chapter 7 or Chapter 13 bankruptcy will work for you with a simple call to our office at 888-312-1031 to speak for free, confidentially, and without obligation to an attorney to discuss options.
While eliminating your debt in bankruptcy and freeing up the money spent on credit cards, personal loans, payday loans, medical bills, and other obligation can assist in improving your retirement cash flow, many need a little more. The other side of the “”reducing expenses” equation is “increasing income”. Many retiree have embraced a second career, usually part-time, not just to have the additional income to supplement social security benefits but also the added advantage of having the stimulation and socializing that comes as a byproduct of work.
For those of your in retirement or facing the specter of not being able to afford to retire give us a call for a free, confidential, no obligation consultation about how to help relieve the stress and anxiety of your debt by calling tel:800-662-8813. We look forward to helping you be one step closer to a comfortable retirement because you have earned it.
Baby boomers, bankruptcy, social security, chapter 7, chapter 13