According to statistics, 15% of baby boomers will not get out of debt in their lifetimes. This presents a huge problem because many baby boomers will end up having to file for bankruptcy due to medical expenses or credit card debt.
The main cause of this issue is the bad economy and the fact that many seniors did not save enough money for their retirement. Many people now live beyond their means because the economy is in bad straits. Most consumers now have balances of between eight and ten thousand dollars on their credit cards.
Baby boomers are more likely to rely on credit cards in order to buy their prescriptions and to pay their other household expenses. When Social Security benefits kick in these individuals live on a very fixed income. Then, they have to charge their credit cards in order to survive economically.
The world is ever changing and people need to plan in advance for their senior years. It is crucial to have enough money in savings for living expenses, medical expenses, and miscellaneous expenses. As a person’s income becomes lower they need to focus on being thrifty and making good financial choices.
People should look into buying annuities so that they can avoid getting deep into debt when they retire. An annuity is done through an insurance company. The person who takes out the annuity makes payments to the insurance company. The annuity accrues interest and the taxes on the earnings are deferred so that the amount of the annuity grows over the years.
This is one of the best ways to invest money for the long term because the money will always be paid out even if the person dies. When a person dies and they have an annuity, the annuity holder’s beneficiary will receive the money. In a time where stocks and bonds are a gamble, annuities are a great option for people who want to save for their golden years.