As an older adult, you want to do everything you can to prepare your finances for retirement in Nevada. Perhaps you know of a few friends or relatives older than you who filed for bankruptcy in their golden years. What is the reason for so many older adults filing for bankruptcy recently?
Forbes investigates the matter. If you feel worried about your financial future, learn how to protect yourself from becoming a statistic.
Increased medical costs
Many adults experience health complications as they age, which may require more trips to the doctor and increased medical spending. Even with Medicare and other programs, many aging adults experience difficulty paying their medical bills. Over time, those in need may have no choice but to file for bankruptcy.
Lack of a financial safety net
Pension plans, trade unions and wages are not the same as they were 40 years ago, leaving many retirees to financially fend for themselves. While employees can set up their own retirement account, their lone efforts may not be enough to support them and their retirement.
Drowning in debt, older adults may become victims of never-ending calls and letters from bill collectors. Besides harassing correspondence, those in financial quicksand may have their wages and Social Security checks garnished to cover federal student loans, child or spousal support or back taxes. After filing for bankruptcy, retirees no longer have to endure incessant phone calls or garnished checks, giving them peace of mind.
Predatory financial institutions
A person’s financial woes may not end after filing for bankruptcy. Some banks offer low-interest credit cards to older adults going through bankruptcy, which may do more to harm than help their financial situation. Before long, debts may mount again, forcing the person to consider bankruptcy once more.