Debt Rising Faster than Retirement Savings in U.S.

Written by CFB Blogger. Posted in Blog

Are you accumulating debt more quickly than setting aside funds for your retirement? If so, you are like the majority of Americans whose 401 (k)-type savings accounts are failing to keep pace with mortgage payments, credit card balances, school debt and installment loans. Reporting for The Washington Post, Michael Fletcher writes that “workers with retirement savings accounts put aside more than 11 percent of their pay for retirement—5 percent in their own accounts, and 6.2 percent in Social Security.” According to a recent report by HelloWallet, a Washington, DC, firm that offers technology-based financial advice and conducts research on economic behavior, “despite the $2.5 trillion…employers have poured into defined contribution accounts from 1992 to 2012, the retirement readiness of most Americans has been slipping.” HelloWallet research indicates that “the amount of money that households nearing retirement are dedicating to pay down debts has increased 69 percent over the past two decades. Households headed by people ages 55 to 64 now spend 22 cents of each dollar to pay off old loans, about the same percentage as younger people.” Olivia Mitchell, professor of economics and executive director of the Pension Research Council at the University of Pennsylvania’s Wharton School of Business, avers in the article, “’My work confirms that people are reaching the threshold of retirement much more in debt than in the past.’” Representatives of mutual fund companies, which oversee much of the country’s estimated $4.5 trillion in defined contribution accounts, say that 401(k) accounts are a good way to save for one’s retirement. However, people must look at their entire financial picture and not take on unnecessary debt, particularly in those crucial pre-retirement years. If you find yourself facing retirement with too much debt and not enough savings, you may be considering filing for Chapter 7 or Chapter 13 bankruptcy. This could be the perfect time for you to get a clear picture of your retirement years. Filing personal bankruptcy with the knowledgeable attorneys from Client First Bankruptcy could show you the way to eliminate your debt and allow for greater retirement savings. You’ve worked hard, you deserve to live your Golden Years the way you want. Call us toll-free at 800-383-6004 Monday thru Friday 8:30 a.m. – 6:00 p.m. Central Time. And please log onto www.clientfirstbankruptcy.com for important bankruptcy info anytime.