You plan to retire in a few years, and you want to double-check that you have your finances in order. You have heard more and more about elderly bankruptcy and want to avoid becoming another statistic.
See why Forbes thinks more older adults file for bankruptcy. When you understand the factors at play, you can create a strategy to protect your money.
As we age, we often need more medical attention than we do at a younger age. The increased need for medical care combined with the price of such care may drain an older adult’s financial reserves. Look into federal and state programs like Medicaid and Medicare to help offset the price of needed medical attention.
Frayed safety net
In the past, proper wages, trade unions and pension plans helped offset the cost of aging. Those safety nets are not as strong as they used to be, knocking some aging adults off financial balance. Current retirement plans may leave employers off the hook for providing employees with financial peace of mind with a pension plan.
Sometimes, banks and other financial institutions prey on older adults through low-interest credit card offers to consumers experiencing financial hardship. Housing debt such as mortgages also puts a financial strain on the aging population.
Peace of mind
Fed up with creditor harassment, older consumers may file for bankruptcy to put an end to incessant phone calls and demanding letters from bill collectors. Another way filing brings mental and emotional peace is creditors cannot garnish government checks such as Social Security after a debtor files for bankruptcy.