Number of Retirees Carrying Debt into Retirement Increases
The number of retirees that feel confident in carrying debt into retirement is increasing, according to recent report. Seniors are becoming more comfortable with the idea, however, it could cause a strain in retirement finances.
"Reverse mortgage professionals have long identified a perception gap between older, 'Greatest Generation' seniors and their younger baby-boom counterparts," according to Reverse Mortgage Daily.
"Among the older cohort, mortgages are traditionally seen as a means to an end that must be paid off as soon as possible, while boomers are generally more open to the idea of using debt to upgrade their existing properties — for instance, through the use of traditional home equity lines of credit — or to purchase a larger dream home in retirement."
This new comfort in carrying debt can be dangerous for incoming generations of retirees, according to BRI senior research associate Craig Copeland. If retirees don't clear at least a substantial amount of debt they may be in, they run the risk of running out of money during their retirement.
To learn more about the risks retirees face when carrying debt into retirement, click on the image above.