Forbes recently featured an interesting article entitled Baby Boomer Spending Habits: Here’s What’s Really Hurting Their Retirement. The article discusses a report prepared by the National Center for Policy Analysis which studied Baby Boomer spending habits and concluded that many are in no way prepared for retirement.
While hardly news for those paying attention and living below their means, it will likely – but only momentarily – strike well-deserved fear in many. Estate of Denial® includes this in our reporting on probate issues only because it undoubtedly is another factor that will easily contribute to financial desperation and our country’s growing sense of entitlement thus likely spawning more probate abuse.
Here are two points from the article that we found especially of interest.
“Today, outstanding student loans amount to more than one trillion dollars.11 A recent analysis by the New York Federal Reserve Bank found that one-third of the nation’s student loan debt is held by individuals over the age of 40,” the report says.
The trillion dollar student debt loan is another factor that will bring many negative consequences to our economy and our social composition. That so much of it is held by Americans aged 40+ speaks to lackluster payback histories and an impending collision of this debt with retirement plans. Financially irresponsible Baby Boomers won’t like disruptions in the fun-oriented plans, others of us won’t like paying for their bad judgment – but it’s coming.
Another interesting point:
“As the age of the first time homebuyer increases, the probability that a household will carry a mortgage into its pre-retirement years also increases. In addition, due to the availability of home equity loans, many boomers who were previously close to paying off their homes could be refinancing or tapping into home equity. In fact, it is estimated that 15 percent of all baby boomers will not get out of debt in their lifetimes,” the report notes. (emphasis added)
Past and current fiscal irresponsibility on the part of government (at all levels!!) is endangering our way of life. This article reminds that government is not alone – individuals have as well contributed generously to the looming financial catastrophe.
Think that makes your estate more secure? Think again!