Debt Among Oldest Americans Skyrockets 543 Percent in Two Decades

The Federal Reserve Bank of New York estimated that the total debt burden for Americans older than 70 soared 543 percent from 1999 through 2019 to $1.1 trillion, reports CNBC . A 2018 study by the Social Science Research Network (SSRN) concluded that seniors have been "disproportionately harmed" by a worsening "modest social safety net." A separate report by the Employee Benefit Research Institute found more seniors risk running short of money in retirement due to their increased likelihood of debt. Households headed by someone older than 75 with debt payments exceeding 40 percent of their income grew more than 23 percent from 2007 to 2016. Employers' preference for high-deductible health plans and migration from pension plans to 401(k) plans has forced Americans to assume more individual responsibility for their finances. The New York Fed said student loan debt for 65-year-olds increased 886 percent per person between 2003 and 2015, while the SSRN study found "exponential" growth among older Americans filing for bankruptcy, due to factors like increasing need for long-term care and the problems older workers have finding new jobs. Some financial advisers said having debt in retirement is not always a negative, and racing to settle debts may not always be the wisest strategy.