When talking to the older adults in your life, you notice that a few of them know several other older adults who filed for bankruptcy. You do not plan on retiring soon, but you do not want to count yourself among the ranks of those who file for elderly bankruptcy.
Forbes may help you understand why so many of those in their golden years go bankrupt. The right information may aid you and the older adults in your life.
Maybe you noticed the dwindling trade unions, stagnant wages and poor pension options. These factors leave many workers without a proper financial safety net as they reach retirement age. Companies no longer want to saddle themselves with risks related to offering employees pension plans, leaving workers with little choice but to fund their own retirement.
Increased health care costs
Many older adults experience increased health conditions as they age. It is more expensive to take proper care of older generations who live longer, even for those who qualify for state and federal programs such as Medicare. Even if a person receives Medicare, the program does not pay for as much elder health care as it used to.
Predatory banking practices
Some banks and lenders prey on older adults by offering low-interest credit cards for recently bankrupt seniors. More older adults than ever have debts and mortgages, and they may feel that filing for bankruptcy offers the only source of relief from harassing credit card companies and lenders. After filing, creditors may no longer siphon money from a person’s Social Security checks.
Learning the reason for elderly bankruptcy may help you avoid it. Take steps to protect your financial and physical health.