Unfortunately, bankruptcy is becoming a more and more common for over 60s.
Almost 14 per cent of people aged 60 or over are declaring bankruptcy – a spike of 7 per cent since 2002.
Although many retirees are “asset rich” and carry little to no debt, a growing number have a little amount of assets and are in debt up to their ears, as reported by The Conversation.
Credit card debt
Over 80 per cent of seniors who declare bankruptcy have credit card debt of some sort – whether that amount is small or high. However, more than 40 per cent of credit card debtors owe over AUD$20,000.
Ill health
Ill health is a main reason for many retirees or those on the verge of retiring are bankrupt. 17 per cent of debtors contribute poor health, whether physical or mental, to their financial situations.
Bankruptcy is becoming an increasing factor in the lives of over 60s as they continue to make up a worryingly increasing percentage.
The Conversation suggests bankruptcy could be reduced amongst the senior population of Australia through changing government benefits by increasing the Commonwealth Rent Assistance supplement.
How have you ensured you have enough funds to ensure a comfortable and financially stress-free retirement? Tell us in the comments below.
This article was written in partnership with Over60.