As people get older, it is often presumed that their net worth will get greater, and their financial challenges will decrease. However, it has been reported that many older Americans are struggling with financial issues and unmanageable debts.
The reason for this has been broadly pinned to the shift from a strong social safety net to a concept of personal responsibility for financial challenges. In general, older Americans do not have as much support from social programs if they are struggling due to high health care costs or other unforeseen financial issues. The following are some key reasons why so many older people are being forced into bankruptcy.
Financial duties to family
When younger generations are struggling financially, it’s common for parents and grandparents to intervene from a sense of duty and love. Older Americans pay by helping their children to keep up with their mortgage or by sending funds to ensure that their young grandchildren have everything they need. This, in combination with other financial struggles, can often lead to debts that creep up and become unmanageable.
Job loss due to illness or disability
Those over 65 have Medicare and are entitled to basic health insurance if they become ill. However, becoming ill or suffering from the disability could lead a person to unexpectedly be unable to work, and this can quickly lead to high debts.
New rules have come into effect on pensions, which has meant that for many, the value of a pension has been reduced.
If you are over the age of 60, and you are suffering financially, filing for bankruptcy could be the best option for you. It’s important to understand the different bankruptcy filing options before taking action.