There may be plenty of baby boomers in New Jersey that wish they could afford to retire, but just don’t feel they can due to their financial situation. When the recession hit, many baby boomers believed that the equity in their home was like having a savings account. Now, some of those same people are facing foreclosure and bankruptcy due to circumstances out of their control.
The breadth of the problem can be seen by the fact that more and more baby boomers are enlisting the services of credit counselors. The National Foundation for Credit Counseling, or NFCC, has reported that approximately one-third of the clients it has are over 55 years old. American Consumer Credit Counseling reports that approximately 25 percent of the clients it sees are over 55 years old.
It is becoming normal for people to reach retirement age with an ever growing amount of debt. Many who have reached the retirement age have to use credit cards for basic needs such as groceries and utility bills and don’t have any savings. Many more are either unable or struggling to make ends meet.
Filing for bankruptcy could provide many baby boomers in New Jersey with the opportunity to obtain a fresh start financially. Today’s economy has not been forgiving to many people. Through no fault of their own, their retirement plans have disappeared along with the equity in their home and their savings accounts. Having the opportunity to start again financially may provide a way to rekindle the ability to retire despite the economy.
Source: USA Today, “Retirement Living: Debt holds many Boomers back,” Rodney Brooks, Jan. 29, 2013