10 Jun More and More Baby Boomers Facing Mortgage Debt Upon Retiring
Retirement is the reward for all of those years of hard work, but real estate experts say that more and more Baby Boomers are facing mortgage debt upon retiring. Securian Financial Group, a St. Paul, Minnesota-based financial services firm, recently published the results of a survey that found that a shocking 49% of retirees are doing so with debt.
And when it comes to their debt, mortgage debt trumps all other financial hardships for Baby Boomers. According to the study’s results, 38% of current retirees have at least $50,000 in debt, and of those who are nearing retirement, a whopping 67% said they expect to carry mortgage debt with them into retirement.
The last time that Securian completed the same study was in 2009, and by comparison, respondents that said they expected to carry mortgage debt with them into retirement was just 30% four years ago. Michelle Hall, manager of market research at Securian, said, “Mortgage debt is a dark cloud over pre-retirees’ financial futures. These numbers are troubling. For retirees on fixed incomes, debt payments are extremely burdensome and become more so as the cost of living rises.”
Credit card debt trails closely behind mortgage debt, and close to 40% of pre-retirees in the survey said they will likely have credit card debt upon retirement. Securian’s study also looked at their attitude towards debt. While 53% of respondents said that “debt is something to avoid if possible,” 19% had a different view, noting that “debt is normal.”
The survey also found that 23% of pre-retirees feel that their debt will be “much more” than their savings as they enter into retirement. And this is troubling considering that so many retirees have more debt than their savings and investments combined.