A recent article on the CNBC website, This growing problem threatens to delay your retirement, discusses the results of a new study that compares debt levels among different generations when they were between the ages of 56 and 61. Here are several excerpts from that article:
Americans today are more likely to reach retirement in debt than ever before.
Researchers found that more than 70 percent of people who fell in that age range in 2010 were in debt, up from 64 percent in 1992.
“More and more, the current generation will have to deal with debt close, and into, retirement,” said Annamaria Lusardi, the Denit Trust Chair of Economics and Accountancy at the George Washington University School of Business, and a co-author of the study.
In addition, she said, “the value they carry close to retirement has increased a lot.”
People who were between the ages of 56 and 61 in 2010 carried a median debt balance of $32,700, up from $6,760 in 1992. (All values are expressed in 2015 dollars).
“This debt can contribute to some financial fragility,” Lusardi said.
Continue reading the entire source article.