Forces beyond your control stack the deck against your finances. Wage stagnation proves a problem for most people. But as a senior citizen, it may be difficult for you to find a steady job in the first place. Companies in Michigan and beyond are shifting from pension plans all while medical costs rise up.
According to Forbes, bankruptcy has seen a graying over the past few decades. 1991 saw elders making up 2% of the bankruptcy relief claims. That number is up to 12% by 2019. 2020’s hardships no doubt put pressure on everyone, especially if you are in your later years.
The tough reality
No matter what life decisions you make, the system itself has big problems. If you are over 50, you may face superannuation troubles. The whole point of your 401k is that you put in money from your work today so you have more in your retirement tomorrow. If you cannot hold a steady job for 40 years though, those steady contributions might hiccup. If you injure yourself or get sick, those medical costs may eat up your hard-earned money.
Combine that with the savings crisis, where many households in the bottom quarter of senior demographics total only $3,000, you may not have enough to get you through rough patches.
The helpful solution
These external factors do not make it impossible to avoid debt, but if you are not careful it may spiral out of control. Bankruptcy may seem like a failure to pay your debts but you should look at it as a tool that might help you get out from under these overwhelming costs. Whether you default on your debts or consolidate them for easier pay, there is a way forward in your senior years.