I found the following article to be very interesting and a bit scary - I wonder where the money will come from.
http://www.usatoday.com/money/perfi/credit/2010-11-21-senior-debt_N.htm?csp=obinsite
About one third of the seniors surveyed for this article carry their mortgage debt into retirement.
Many are not worried about their debt and continue to rack up debt, they feel it is too late to do anything. The feel privileged, continue to vacation and entertain -- do these people have a conscience? Where is there moral goodness? Some don't talk about debt because of pride and some are scared; 75% went into debt because of medical expenses and funeral expenses.
With over 38.5 million Americans over the age of 65, this is becoming a huge problem. Should lending agencies continue to allow mortgages after a certain age; or would this be discrimination? Should credit card agencies tighten the limits? Maybe the new Health Care Reform will reduce the medical expenses on individuals....but this money too must come from somewhere.
That is a very real situation. I see another side of this problem. A lot of the folks I work with are disabled at earlier ages because of their MS so that population will also add to the debt problem because for so many of them the medical expenses and the very expensive medications will cause their debt. I hate to say it but I do see some people feeling entitlement because they have a disease so they just keep spending thinking that someone will pay their bills. I do have hope that some parts of the healthcare reform will help solve some of this problem but its not the answer. I don't really know what is.
ReplyDeleteI believe this is a responsibility that falls onto their children. Offspring of elders want to see their parents have an enjoyable retirement and not have to worry about the burden of debt. It should be the kids responsibility to make sure their parents are ready for retirement and death expenses before they do so. I realize that a child would not have much pull with a parent but they could voice their opinion and hopefully their parents would listen. I am currently trying to talk my parents into selling their house and move into something smaller. Their home is starting to get to big for them and in another 5 years they will either need help or be forced to sell their home since they will not be able to care for it. I am also trying to get them to fill out power of attorney forms that would allow one of their children to control their funds if need to. The hardest part is telling my parents that they are getting old and that they need to do something before they can't anymore. Hopefully within the next year I will have planted the seed enough that they will turn everything over to the kids before their minds go. I guess only time will tell.
ReplyDelete