As you draw closer to retiring in Indiana, you likely want to set yourself up for financial success in your golden years. That means not only continuing to save money for retirement but also educating yourself on money matters unique to the elderly. For instance, what do you know about the increase in senior citizens declaring bankruptcy?
Forbes explores the issue and the reasons behind it. Use the information to take steps to safeguard your hard work and retirement funds.
Increased medical costs
In addition to higher medical costs, senior citizens also often have to contend with more health concerns than younger generations. You may have Medicare, but even then, it may only cover a small percentage of your total elder health care costs. MarketWatch notes that all the Medicare coinsurance, copays and deductibles can prove financially insurmountable for some senior citizens.
You could have debts that carry over into your retirement years, creating a looming financial obligation that eats away at your income. Besides credit card debt, mortgages also burden some seniors.
Creditors do not care about age when it comes to collecting on debts. Understandably, senior citizens want a peaceful retirement, which becomes impossible with a barrage of harassing phone calls from creditors. To regain peace of mind, some elderly individuals file for bankruptcy to block calls from creditors.
Loss of employment opportunities
Those in their 50s and older may have trouble finding work; you could very well be in this position yourself. Even if you can find work, the position may not pay enough for you to contribute to your retirement. Related to a loss of employment opportunities for older workers is that not every employer offers a 401(k) program for employees. This makes it harder for workers of all ages to prepare for retirement.
Filing for bankruptcy does not have to represent a personal failure, no matter your age. Even if you are financially stable now, it does not hurt to speak with legal and financial professionals to learn how to protect your finances and your retirement.