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Thu Aug 9, 2018, 04:01 PM

As Health and Financial Challenges Grow, More Older Adults File for Bankruptcy

According to a recent study featured in the New York Times, bankruptcy among older Americans is on the rise. The rate of people age 65 and older filing for bankruptcy is three times what it was in 1991, and this group now accounts for 12% of all filers, a far greater share than in 1991 (2%).

Driving the surge, the study suggests, is a three-decade shift of financial risk from government and employers to individuals. This pattern—which includes people waiting longer for full Social Security benefits, employers replacing pensions with defined contribution savings plans, and soaring out-of-pocket health care costs—has transferred many of the health and economic challenges associated with aging onto older adults.

The study’s findings shed light on the precarious financial situation facing many older adults. Half of all people with Medicare have annual incomes below $26,200 and one quarter have incomes below $15,250. People of color live on even less. The median income for black beneficiaries is $17,350 per year and just $13,650 for Hispanic beneficiaries. In addition, most people with Medicare have little to no savings. In 2016, 50% of all people with Medicare had $74,450 or less in savings, one in four had less than $14,550 in savings, and 8% had no savings or were living with debt.

That doesn’t provide much of a financial cushion for unexpected expenses or costly health needs. While Medicare helps most older adults pay for health care, gaps in the program’s coverage, high premiums, and cost-sharing requirements mean people with Medicare can face significant health-related out-of-pocket costs. Combined with the relatively low incomes among the Medicare population, these expenses can result in beneficiaries devoting a substantial share of their income to health care costs.


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Reply As Health and Financial Challenges Grow, More Older Adults File for Bankruptcy (Original post)
Yo_Mama_Been_Loggin Aug 2018 OP
scarletwoman Aug 2018 #1

Response to Yo_Mama_Been_Loggin (Original post)

Thu Aug 9, 2018, 08:12 PM

1. My future.

I'm hoping to retire by the time I'm 70 - November 2019 - but it's looking very bleak.

My only source of retirement income will be a fairly tiny Social Security check - a bit over $1,000 a month.

I guess I'm probably fucked...

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