The number of families headed by seniors older than 75 that had debt increased, as did their level of indebtedness. In 2010, almost four in 10 such families (38.5%) had debt, up from 31.2% in 2007. Their average debt was $27,409, more than double the $13,665 they carried in debt in 2007. Even more concerning, the percentage with debt payments greater than 40% of their income—a measure of debt load trouble—increased to 4.9% in 2010, from 4.3% three years earlier.
In contrast, families headed by those nearing retirement (55 – 64) or in early retirement (65 – 74) had very small changes in these debt measures and in some cases, they saw improvements, according to EBRI. For example, families with heads between the ages of 55 – 64 had an average debt level of $107,060 in 2010, down from $112,075 in 2007.
For all American families with heads age 55 or older, the percentage with debt held steady from 2007 to 2010, at roughly 63%. Furthermore, those with debt payments greater than 40% of income dropped to 8.5% in 2010 from almost 10% in 2007.
The findings are consistent with an earlier report released this week that showed that almost one in five elderly American households outspent their income by more than 50% in 2009 and some (14.3%) outspent their income by more than 175%.
