Grandparent Debtors on Rise as Baby Boomer Population Grows

A Baby Boomer is an individual that was born between 1946 and 1964, according to the U.S. Census Bureau. Over 76 million babies were born during that period of U.S. History, and those still alive today began to retire from the workforce last year. Many have not properly prepared for retirement, bring excessive debt into their retirement years, had families and now have grandchildren. As a result, grandparent debtors are on the rise in these United States as the baby boomer population grows.

Retirement

Retirement (Photo credit: 401(K) 2013)

Understanding Important Facts About Baby Boomer Demographics

Understanding Baby Boomer demographics should help us see why there will be a dramatic increase in Baby Boomer debt as time goes by. Here are some important facts about Baby Boomer demographics you should know:

  • More people were 65 years and over in 2010 than in any previous census.

  • Baby Boomers make up 35% of the American adult population.

  • By 2030, the 65-plus population will double to about 71.5 million.

  • Baby Boomers control most of the net worth of American households and they account for 40% of total consumer demand.

  • Baby Boomers account for nearly $230 billion, or 55%, of consumer packaged goods sold.

  • Baby Boomers spend the most on healthcare and pharmaceuticals.

  • Over 76% of the Baby Boomer population intends to keep on working after their federal retirement age.

  • 60% of the Baby Boomer population lost value in investments because of the recent economic crisis.

  • Over 40% of the Baby Boomer population was not adequately prepared financially to retire before the Great Recession; an additional 44% of the Baby Boomer group since the Great Recession is at risk of losing enough of their retirement income to adequately retire.

  • 42% of the Baby Boomer population are delaying retirement and 25% claim they will never retire from their current work.

  • Currently, over 46% of the seniors dying have a net worth of $10,000 or less.

  • More than 2 million Americans over 60 owe student loan debt, with the average balance standing at about $19,500, up from just under $11,000 in 2005.

  • According to one survey, One-third of the Baby Boomers said they have recently used credit cards to help fund basic expenses, like rent, mortgage payments and utilities.

  • With rising healthcare costs, over half of the Baby Boomers are charging their medical bills to credit cards. Some will have adequate retirement to handle the high credit card interest while others do not.

  • Nearly half of those currently retiring are doing so with debt. 38% of the retirees hold at least $50,000 of unsecured debt while 67% of them carry mortgage debt.

  • The cost of living increases almost 2.5% annually, and most retirement accounts will not keep up. Many Baby Boomers may go more into more debt to keep up with the rising cost of living.

What the Facts Mean to the Baby Boomer Generation

What the above facts may mean to the Baby Boomer Generation is that many of them will be grandparent debtors in their retirement age, and their numbers are growing. With grandparent debts increasing, the potential of having to file for bankruptcy protection one day also increases.

 

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