Baby Boomer Retirement May Be at Risk
Updated: Dec 9, 2019
Many Baby Boomers who are approaching or who are in retirement are not financial prepared for this life change. Despite their best efforts to save for retirement, many face the possibility of struggling to meet monthly bills. The base cause for this struggle is that 40% of all Baby Boomers still have credit card debt, according to a survey by the real estate company, Clever. *
Paying down debt in your late 50's and early 60's robs the opportunity to save for retirement. Paying $500 per month to reduce credit card balances is $500 that can't be saved for retirement. Without that payment burden, this additional money could be added to a IRA or 401K program or other savings vehicle. That additional savings and the time value of money can make a big difference for your retirement future.
If debt remains after the retirement date, the money used to service this debt can not be used for basic living expenses. As a result, a person's standard of living may be compromised until this debt is repaid.
The earlier credit card debt is addressed and extinguished, the better it is for a person's long term retirement plan. Erasing debt and putting that money towards retirement can build a pot of gold that will grow for many years. And it will be available to you longer in retirement. If you take on this credit card challenge and you are not making progress, your life style needs to be reviewed and changed. The earlier this debt monster is slain, the better it is for your long term financial health.
* The Motley Fool thefool/amp/retirement/2019/09/11