Here’s How You Might Face Bankruptcy Even In Your Retirement (And How To Keep It At Bay)
The number of people filing for bankruptcy has been declining since 2011, as was revealed by the Administrative Office of the U.S. Courts. Though that may seem like a piece of good news, many Americans are still afraid of having to file for bankruptcy; in fact, numerous U.S. citizens are seeking bankruptcy protection each and every year, and they also include individuals who are retired or almost closing in on their retirement age. The percentage of seniors who are 55 years or above and are filing for bankruptcy has been growing at a rate that’s faster than the younger population, the U.S. Census Bureau confirms. Are you going to retire soon? Do you run the risk of going bankrupt in your retirement? Read on to know more.
You Cannot Keep Up With Your Medical Bills
The Kaiser Family Foundation states that around 30 percent of the adults in the United States has undergone a lot of trouble in the last year, as far as paying medical bills is concerned. Medical debt is, indeed, a big headache for Americans belonging to all age groups. Talking about the retirees, paying off medical bills becomes increasingly difficult for them as the cost of healthcare increases as they age. There are several health issues that lead to huge medical bills and that can make retirees face bankruptcy. A disease or an accident that’s beyond one’s expectations can really prove to be detrimental to their financial planning in retirement.
You Are Neck Deep In Debt
According to a recent survey, the younger population seems to be deeper in debt than seniors who are 65 and above. Sometimes, the debts are so high that the retirees are compelled to file for Chapter 7 bankruptcy with the single aim of having their debts dismissed or Chapter 13 bankruptcy in order to formulate a debt repayment plan. Owing a huge amount in your retirement age doesn’t do any good to your financial as well as future prospects. So make sure to pay off every cent before finally retiring!
How To Overcome Medical Debt?
If you want to have a clear idea of how health care expenses might shape up, you need to be aware of the fact that according to a recent estimation, a 65-year-old couple who is on the verge of a retirement needs to have at around $275,000 in their kitty if they want to cope up with the medical expenses after they retire. In case you are thinking of retiring before you become eligible for Medicare, remember that you need to get hold of health insurance coverage all on your own if you want any future catastrophe to be covered. Aside from having medical coverage, you need to have an emergency fund to cover all miscellaneous medical expenses. Putting your savings aside for the critical moments is a must.
How To Prevent Yourself From Being Neck Deep In Debt
To prevent bankruptcy in retirement, you need to take proper steps to pay your debts off well before you call it a day. Before quitting your job, you need to take into account the following five debts that you must get rid of before you walk out of your workplace for the final time – mortgage, auto loan, student loan, credit card, and medical debt. You can also appoint a financial planning lawyer or, for that matter, credit counselors if you want to tackle these debts. Such a move can definitely prove to be helpful in the later stages of your life.
How To Protect Yourself From Scams
Senior people are pretty vulnerable to scams since they are believed to be more naive, according to a number of experts. If you receive a call and are asked to shell out a certain amount to lay your hands on a prize or you receive threats in case you don’t furnish any personal information, be assured that it’s nothing but a scam. Hanging up on anyone in these situations is the best option you have. Beware as fraudsters are lurking around you.
Don’t retire before calculating your expenses for the future. Medical and healthcare expenses can start climbing at any instant, more so if you are not able to avail Medicare benefits. Moreover, you might find yourself face-to-face with any untoward incident in your retired life. Preparing yourself for any unforeseen circumstance is absolutely imperative if you want to live a peaceful life in retirement.
More in Business & Finance
Top 6 Best Housing Options for Older Adults
As we grow old, our physical and mental health needs change. In turn, this means that we require more assistance from...September 21, 2023
Why Hollywood Is Private Equity’s New Money Machine
Hollywood has always been known as a glamorous industry, what with its big budgets, huge stars, and even bigger box office...September 14, 2023
How Amazon Sellers Can Thrive in Their eCommerce Ventures
The past year has seen exponential growth in eCommerce transactions due to the unprecedented times the world finds itself in. Amazon...September 10, 2023
How to Retire With Maximum Social Security Benefits
Retirement is a time to unwind and enjoy the fruits of your labor, but to ensure you are living comfortably, you...August 29, 2023
How to Grow Your Sales in a Weak Economy
As a business owner, you know how challenging it is to keep your business alive during times of economic hardship. The...August 22, 2023
Personal Loan Mistakes to Avoid
A personal loan can be a great option when you need some extra cash. Personal loans offer flexible terms and lower...August 16, 2023
Celebrity Ventures That Flopped Spectacularly
When it comes to celebrity entrepreneurship, we often hear about the success stories of those who have built thriving business empires...August 8, 2023
A Tight Labor Market: Signs and Factors
In economics, a tight labor market is a term used to describe a situation where labor demand exceeds the available workers’ supply....August 6, 2023
Looking To Engage in Free Wellness Activities? Here Are Some Go-to Options
Keeping up with your fitness activities is essential for your overall well-being. However, many people tend to shy away due to...July 26, 2023