Skip to main content

Boomers Going Broke

  • Published: 2010-10-04 : Author: Illini Legal Services
  • Synopsis: Recently more baby boomers are finding themselves in financial difficulty.

Main Document

Bankruptcy filings have been on the rise during this challenging economy. Financial struggles are impacting all age groups, and, recently, more baby boomers are finding themselves in financial difficulty.

While people have considered bankruptcy a non-option, it might be the only way to eliminate debt. With retirement rapidly approaching, boomers need to have a plan in place that will allow them to get back on their feet.

A report by the American Bankruptcy Institute (ABI) Journal states that nearly 42 percent of individuals who filed for bankruptcy in 2008 were between the ages of 45 and 64. The baby boomers showed an increase in filings of two percent from 2007 study. This was the highest increase among any age range.

The reasons for boomers having financial problems are similar to those common in other age groups. High credit card debt can result in more money being needed for bills. With more bills to pay, less money goes into retirement accounts, reducing the amount of money available to build a stable financial future. The cost of higher education is an issue as well, both for boomers and their children. Tuition costs and student loans have increased considerably over the years, and boomers are feeling the pinch. While incomes may increase with higher education, it can take a long time to repay student loans.

The recent downturn in the housing market led to many boomers losing whatever equity they may have had in their homes. Refinancing has led to poor interest rates, leaving many boomers owing more than their homes are worth on the open market. Baby boomers also have unfortunately timed retirements looming. The collapse in the stock market has substantially reduced 401(k) plans. Funds that they had planned on having for retirement just are not there, and there is not time to rebuild wealth. It is crucial for boomers to deal with the reality of the situation that they are facing.

The baby boomer generation is the first generation where debt seemed normal. Despite being comfortable with debt, there is still uneasiness with bankruptcy. To some boomers, the advantages that come with bankruptcy do not outweigh the stigma that comes with filing. However, bankruptcy can reduce the financial strain you may be facing. An experienced bankruptcy attorney in your area can help you understand your situation, and help you come up with a plan that fits your needs.

Article provided by Illinois Legal Services Visit us at


• Have your say! Add your comment or discuss this article on our FaceBook Page.

Similar Topics

1 : Senate Health Bill Buries Biggest Medicaid Cuts Using Insufficient Inflation Adjustment : The Senior Citizens League.
2 : 79% of U.S. Seniors Think Millionaires Need to Start Paying Their Fair Share : The Senior Citizens League (TSCL).
3 : If Senior CPI Used to Calculate 2017 COLA, Benefits Would Be 2.1% Higher : The Senior Citizens League.
4 : Senior Americans Deserve Fairer 2017 COLA : The Senior Citizens League.
5 : Seniors Take Medical Risks Given Enough Benefits : Society for Risk Analysis.
From our Seniors News section - Full List (109 Items)

Submit disability news, coming events, as well as assistive technology product news and reviews.

Loan Information for low income singles, families, seniors and disabled. Includes home, vehicle and personal loans.

Famous People with Disabilities - Well known people with disabilities and conditions who contributed to society.

List of awareness ribbon colors and their meaning. Also see our calendar of awareness dates.

Blood Pressure Chart - What should your blood pressure be, and information on blood group types/compatibility.

1 : 20 New Episodes of Letters to Lynette with Dr. Lynette Louise to Air on The Autism Channel in 2018
2 : Turnstone Center Designated as Official Paralympic Training Site by US Olympic Committee
3 : Help Your Child in School by Adding Language to The Math
4 : 50% of Retirees Saw Little or No COLA Increase in Net 2018 Social Security Benefits
5 : Turnstone Endeavor Games Concludes with National Records Broken
6 : Spinning in Circles and Learning From Myself by Tsara Shelton
7 : St. Louis HELP Medical Equipment Donation Drive Generates Record-Breaking Results
8 : People Who Snore Suffer from Palate Nerve and Muscle Damage

Disclaimer: This site does not employ and is not overseen by medical professionals. Content on Disabled World is not intended to be a substitute for professional medical advice, diagnosis, or treatment. Always seek the advice of a physician or other qualified health provider with any questions you may have regarding a medical condition. See our Terms of Service for more information.

Reporting Errors: Disabled World is an independent website, your assistance in reporting outdated or inaccurate information is appreciated. If you find an error please let us know.

© 2004 - 2018 Disabled World™