According to a new Harvard Study, one of the top reasons people are filing for bankruptcy is due to medical expenses. Monroe County residents are not exempt from the trend where many baby boomers are struggling to make their payments.
The Administrative office of the United States Courts says people between the ages of 55 and 64 lost 50 percent of their net worth from 2004 to 2009.
“Traditional pensions in general don’t support them. They’ve had a lot of difficulties because of the economic downturn and that’s really impacted how they retire,” says Kerry Conway, the Executive Director of the Area 10 Agency on Aging that serves south-central Indiana.
She says Hoosier baby boomers are the leading edge of people who don’t have traditional retirement pension plans.
“There are 14% of people retiring in the United States today are retiring with a negative net worth,” she says. “It’s in large part that due to the economic turn down really impacted the major investment that most boomers had made and that’s in housing.”
Conway says the average social security that a boomer receives is just a little over a $1,000 per month. Another factor sapping the incomes of baby boomers is obesity.
About two-thirds of the senior population is overweight, which has led to more money spent on health care and a doubling of the bankruptcy rate.