People in Indiana who are concerned about making their financial ends meet and who may even be contemplating filing for bankruptcy are far from alone. Even as the economy continues to be strong relative to the years of the great recession, many factors are coming together to contribute to the need for multiple consumers to seek debt relief from bankruptcy.
As reported by The Economist, it appears that one generational group in particular may be at a higher risk for bankruptcy than other demographic groups. This would be the baby boom generation. One thing that is interesting to learn about this group is that for the past few decades, they have displayed a high rate of bankruptcy relative to others. This is true of them when they were in the 30s, 40s and now that they are in the 50s, 60s and even into their 70s.
In addition to factors that may make this baby boom group historically challenged when it comes to financial problems are realities they face in today’s world. One of these realities is a lower amount of Social Security than their ancestors. In 2010, the average Social Security payment represented roughly 38 percent of what a person’s wage prior to retirement would have been. In 1980, that same Social Security payment would have represented 48 percent of a pre-retirement earning.
The skyrocketing cost of health care and reduced coverage by health insurance, including Medicare, is also making it hard for the baby boomers to afford the care and treatment they need.