The economic collapse left millions of seniors in destitute. After years of taking equity out of their home and using credit cards to fund vacations, their children and grandchildren’s education, buying cars and living a very wealthy lifestyle, United States seniors have now placed themselves in quite the predicament.
Baby Boomers are facing a retirement crisis. Not only are they flooded with consumer debt, they haven’t saved enough and they have raided their retirement accounts. Moreover, employers have gradually gotten rid of traditional company pensions. The imminent future doesn’t bode well for today’s seniors and current retirees.
More bad news came out Tuesday, which was reported by the Associated Press: 6.5 million, or 30 percent, of homeowners over 65 were still paying off a mortgage as of 2013, up from 22 percent in 2001. Also, 21 percent of homeowners over 75 still have a mortgage (as of 2011). This means approximately half of American seniors in today’s economy have a mortgage. In one’s winter years, the mortgage is usually paid off by now.
“It’s a big problem coming off the housing bubble,” said Cary Sternberg, an adviser at a Florida retirement community, in an interview with the newswire. “A growing number of seniors are struggling with what to do about their home and their mortgage and their retirement.”
The median mortgages held by seniors has also doubled since 2011: from $43,400 to $88,000, according to the Consumer Finance Protection Bureau (CFPB). What’s worse is the fact that the housing meltdown has left millions of older Americans with mortgages that far exceed their home’s actual value.
This is part of the reason why 1.5 million Americans over the age of 50 lost their homes between 2007 and 2011.
America has the best economic system on the planet…………………………………………..