Majority of Baby Boomers won't have homes paid off by retirement
By Paula Aven Gladych
A majority of Baby Boomers expect to carry mortgage debt into retirement, which is a concern since most retirees will be on a fixed income when they finally decide to stop working full-time.
A survey conducted by Securian Financial Group found that nearly half of retirees carry debt into retirement. More than half of those carried $25,000 or more and 21 percent held $100,000 or more in debt at retirement.
The numbers are troubling because for retirees on fixed incomes, debt payments are extremely burdensome and become more so as the cost of living rises, said Michelle Hall, manager of market research for Securian Financial Group.
The number of pre-retirees who expect to carry mortgage debt into retirement rose 123 percent since the last survey in 2009. Nearly half of those surveyed said they expect their debt to equal or exceed their savings at retirement.
Mortgage debt was the most frequent type of debt cited by respondents, followed by credit card debt and car loans. The good news: More than half of retirees said that debt is something you should avoid if at all possible.
Originally published on BenefitsPro.com