https://www.investopedia.com/baby-boomers-are-carrying-debt-into-retirement-heres-how-much-12013027
Thanks for sharing, this made me think of a quote I read some time ago “I was promised golden years, not years where I must sell my gold.”
Baby Boomers carrying debt into retirement face a greater risk that unexpected expenses will strain their budgets and drain savings faster. The article recommends paying down high-interest debt, delaying Social Security if possible, and reducing fixed monthly expenses before retirement.
Of course, that’s easier said than done, especially when life keeps sending surprise bills like it’s subscribed to your mailing list. If you’re in that boat, my first recommendation would be to get help. Clark.com has a lot of great content.
Just remember personal finance is just that, personal, some people enjoy attacking the highest-interest debt first (the math approach), while others find motivation in quick wins (the Dave Ramsey snowball approach).
My biggest takeaway was that more Baby Boomers are entering retirement with significant debt. The silver lining is that much of that debt is tied to mortgages rather than credit cards, which typically carry much higher interest rates.
In my opinion, a mortgage with a reasonable interest rate isn’t necessarily a bad thing if there’s a clear payoff plan and it’s part of a broader financial strategy, which I suspect many Clark listeners have already thought through.
The article’s biggest warning is that debt reduces a retiree’s ability to absorb unexpected expenses. When the roof leaks, the car breaks down, or healthcare costs pop up, debt payments leave less room to maneuver, putting long-term retirement savings at greater risk.
On the lighter side: I told my debt it needed to leave me alone in retirement. It replied, “Sorry, I’m looking for a long-term relationship.”