Debt Causes People To Defer Retirement

There is an interesting but also disturbing article in USA Today about the effect the debt crisis is having on people reaching retirement age.

As people have seen their income drop and their debt has increased they are in a difficult financial situation just when they are looking forward to an easier life, approaching their 'golden years'.

A growing number of Americans age 55 and older have put their retirement dreams on hold as they face a dismal financial reality: The recession has forced many into unemployment, stripped away years of their savings or dramatically reduced incomes during what they had hoped would be their final high-earning years.

One of the main causes of older Americans filing for bankruptcy is credit card debt!

Losing your job in a recession at a later age and increasing medical bills all add to the problems.

One major error to avoid:

Don't use your retirement saving to pay down debt. It is usually beyond reach of creditors!

Source: USA Today