Residents in Louisiana who are near, at or even after the age of retirement may never have expected to be facing serious debt and financial problems at this stage of their life. However, consumers of all ages can find themselves in this problem, forcing them to file for bankruptcy or seek other means of debt relief. This trend is particularly noticeable in people who are 65 years of age and older.
As reported by Insider, a study referred to as the Consumer Bankruptcy Project has found that the rate of personal bankruptcy filings among people over the age of 65 has jumped anywhere between 200% and 300% since 1991. The variance is based upon the specific age cohort reviewed.
Multiple factors are contributing to the need for more baby boomers to file for bankruptcy relief and health care costs are one of the biggest causes. In fact, medical debt and expenses are said to contribute to an estimated two-thirds of all consumer bankruptcies in the United States, regardless of a person’s age. The rising cost of health care hits people over 65 at a particularly tough time as their incomes often dwindle at this stage of life.
Longer lifespans also mean that savings and retirement investment funds must provide for people for a longer period of time than in prior generations. Another issue facing today’s retirees is that 401K plans do not often provide as much income as pension plans which were more popular in prior generations and have been rapidly being replaced by the employer-sponsored 401K plans.