40% of Retired Seniors Plan to Die in Debt

They are supposedly the "Greatest Generation," but 40 percent of today's seniors have accumulated substantial debt in their retirement years that they don't plan to pay off before they die. What's even more surprising is that they aren't particularly interested in doing so, either, according to a new survey by CESI Debt Solutions.

The Children Don’t Know

It will probably surprise many of their children, but retired seniors today whip out the credit cards at a rate not seen before in their demographic. While some are financing medical expenses, others are treating themselves to items they believe they deserve after a lifetime of hard work.

Retiring Without A Plan

The current recession is compounding the problem for seniors who retired in spite of the fact that they didn’t save enough to support themselves or whose pensions have evaporated in the Wall Street disasters of the past several years. At least half of those surveyed saved less than $50,000 for their retirement years or simply retired without having any savings at all.

Can't Ask For Help

One reason the debts are piling up is a result of embarrassment. Seniors don't want to admit to their grown children that they are in trouble and don't know whom else they can turn to for help. Often families have no idea about the debt until an elderly parent dies and the collection agencies descend on the deceased's estate.

What Can Be Done?

But it's not just an issue of those who are already retired; plenty of nearly retired are also carrying significant debt loads with no plans to continue working once they hit retirement age. With Congress looking to raise the retirement age and the coming budget cuts at the state level that seniors generally rely on, personal debt issues are not likely to go away anytime soon.

It's difficult for most families to discuss finances and adult children live in blissful ignorance, believing that their aging parents are managing their money without difficulty. Though it can be awkward to start a conversation with one's parents about their money, it's probably a good idea to inquire in general terms just to make sure that everything is in order.

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