Housing debt isn’t a problem for just the young, as a recent report from the Employee Benefit Research Institute finds that the elderly and those close to retirement living are seeing an increasing amount of debt related to their housing.
"These results are troubling as far as retirement preparedness is concerned, in that American families just reaching retirement or newly retired are more likely to have debt – and significantly higher levels of debt – than past generations," notes Craig Copeland, EBRI senior research associate.
The data comes from 2007, before the current economic downturn, and shows that those in retirement living faced debts almost 25 percent higher than similar groups 15 years ago.
EBRI notes that those figures are probably more extreme now.
In addition, boomers now have more than double the median debt that predecessors did in 1992 when the figures were adjusted for inflation.
While many attach sentimental value to the homes where they raised their children, choosing a more affordable independent living community could lead to less debt and a better financial situation when retirement comes.
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