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The United States has seen a considerable increase in bankruptcy filings among citizens aged 65 and older since 1991. According to a recent study, while most of those who file for bankruptcy these days come from the 30-40 age brackets, the abrupt increase in filings among those who are older is remarkable. Studies show that from an 8.2% increase recorded in 1991, the number went up to 22.3% in 2007. Interestingly, the number of individuals from the younger age brackets who have filed for bankruptcy has considerably decreased.
Experts say that this is either the younger age groups have been experiencing relatively healthier financial states or they have become more adventurous when it comes to handling their finances – holding out with their debts for a much longer period before they decide to take such measures. If the latter explanation holds true, one can easily expect a more debt-ridden older generation in the future.
In any case, the trend is still a legitimate cause for concern as more senior citizens are experiencing financial instability at a time when they shouldn’t be worrying about money anymore.
There are many factors that would explain this phenomenon – the most probable of which would be the rising cost of living, most especially the cost of health care services. It is a known fact that quality health care is beginning to grow more inaccessible to people who do not have sufficient health insurance coverage and those who simply do not have enough means to finance medical assistance.
If there were an age group that badly needs health coverage, it would have to be the elderly. As an individual grows older, he becomes more prone to acquiring various ailments that will warrant medical attention. Unfortunately, most of those who belong to this age group are still forced to contend with the rising cost of health care among the many other cost of living expenses that they have to worry about.
Many individuals are forced to live with a fixed income and the climbing cost of living is making life more difficult especially for those who do not have well-paying jobs. It’s going to be really hard for older people to climb out of their bankruptcy holes as income generating opportunities are proving to be elusive for the older sector.
With so little time to build up sufficient savings for a comfortable retirement, many are forced to face the threat of looming economic instability.
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