EBRInsights - This Week’s Issue Brief — Comparing Trends in Debt Held by American Families With Older and Younger Family Heads.
Employee Benefit Research Institute
EBRI is a nonprofit, independent & unbiased resource organization providing objective information about benefit programs
Much of the attention to retirement preparedness focuses on asset accumulation in individual account retirement plans as well as the presence of defined benefit plans. But the other side of the balance sheet — debt — can potentially have a significant impact on the financial success of an individual’s retirement. Any debt that a family may have accrued entering or during retirement can offset any asset accumulations, resulting in less retirement income security. This week’s Issue Brief focuses on the trends in debt levels among American families, with a special emphasis on families with family heads ages 55 or older and those of different racial/ethnicity groups, as financial liabilities are a vital but often-ignored component of retirement income security.
Click the link below to continue reading the latest edition of EBRI Insights:
https://members.ebri.org/page/EBRInsights304
Sign-up to receive the weekly EBRI Insights e-newsletter directly via email:
https://members.ebri.org/page/ebrinsights
#retirementconfidence #economy #EBRI #healthinsurance #benefits #employee #business #news #HSA #medicaid #employment #healthinsurance #insurance #ACA #health #finance #research #paulfronstin #jakespiegel #PRRL #secure2 #IRA #survey #database #craigcopeland #bridgetbearden #news #washingtonpost #bloomberg #cnbc #employer #retirement #savings #personalfinance #financialplanning #news #401k #caregiving #survey #wws #FSA #savings #definedcontribution #barbmarder #retirementsymposium #bloomberg #FoxBusiness #PlanSponsor #barrons #webinar #healthbenefits #medicare #HSA #news #fastfact #consumerengagement #health #HSA #retirementplans #CNBC #wsj #wallstreetjournal Employee Benefit Research Institute
Debt is the downfall of many and not talked about enough! Thanks for sharing.
HR, Total Rewards, Employee Benefits Subject Matter Expert
5moA concern? Yes for some older Americans. But, consider all that has changed over the past 25 years: - Age 55+ includes all Baby Boomers - Age 65+ working for wages - see increase in Labor Force Participation Rates (2002 vs. 2022) despite "The Great Retirement Boom": The Pandemic-Era Surge in Retirements" (according to the Federal Reserve): Age 55-64: 61.9% to 64.5%, Ages 65-74: 20.4% to 26.8%, Age 75+: 5.1% to 7.6% - Average age claiming SS increased from 63 to 65 - HECM (reverse mortgage) increase - HUD reports 1.3+MM HECMs - less than 3% issued prior to 2000, 97% issued in 21st Century. Baby Boomers & Gen X hold most credit cards - 4+/person according to Experian. Would like to also see debt data compared to net worth: Household net worth by age of head of family: Age Median Average < 35 $39,000 $183,500 35-44 $135,600 $549,600 45-54 $247,200 $975,800 55-64 $364,500 $1,566,900 65-74 $409,900 $1,794,600 75+ $335,600 $1,624,100 Source: Board of Governors, Federal Reserve, Changes in U.S. Family Finances from 2019 to 2022 Evidence from the Survey of Consumer Finances October 2023, Accessed 8/2/24: https://www.federalreserve.gov/publications/files/scf23.pdf