Laserfiche WebLink
~ <br />~ <br />~(ij <br />C11%, <br />9C <br />/ <br />~ <br />~ <br />~ <br />~ <br />~ <br />~c ifig atnone sen~ors <br />y <br />Some hitretirement <br />years loaded with debt <br />By Chr3stine Dugas <br />USA TODAY <br />swampea by aent ana ris116 <br />medical aills,, elderiy Amerirans <br />have been seeking banicruptcy- <br />court protection at sharplyk~faster <br />rates than other adults, a study to <br />be released today itidieates. , <br />Erom 1991 to 2007, the rate of <br />personal bankruptqrfilings among <br />those ages 65 or oldet jumped by <br />150%, according to AARP, which <br />will release ttie nevV reseaz~h from <br />th,e`Consumer Bankruptc'yFroject. <br />The ,inost sCaitling rise qcdnred <br />amtang those ages 75 to 84, whose <br />~`'iestwdy did not address the <br />t`i'easons behind the trend. <br />Zt experts 5ay medical biRs have <br />Lyed a,moor role in the debt that <br />~`tiiteYl=mary4decly Arnericans <br />tnt6tai&tipCcy proceedings. <br />'Healttt c4e is a big issue for the <br />elilerly,' sa~rs George Gaber]avage; <br />director of consumer and state af- <br />faits at the AARP PubGc Policy In- <br />stitute. '"And out of-pocket ex- <br />penses fiave been going up." <br />Retirees in debt <br />Relative perc.entage change in banklvpccy filing rates from <br />1991-2007, by age category <br />Age %change <br />]8-24 -64.1% <br />2S 34. -46,1% <br />35-44 30.1% <br />45-54 24.7% <br />55-64 40% <br />65 74 125% <br />75-84 433.3% <br />1'otat filmgs ,2s.2% <br />Source:20p7.Con5umerBankruptcyProJect As a result, `Gaberlavage says he <br />thinks health care is the sirigle big- <br />gest cause of the rise in filicigs. <br />Domg the same 1991-2007 pe- <br />riod, bankruptcy frlings'by younger <br />Mmericar)s actually dectined. <br />'Ihe 2007 statistics ate based pn <br />a national sample that included <br />2,435 responses from banlruptcy <br />filers. lt's the first in several Con- <br />sumer Bankruptcy Project reports <br />supported by AARP, wluch will lat- <br />er study and sp611 out the individual <br />factors behind the increase. <br />The number of personal bank- <br />ruptcy filings for all age groups de- <br />clined after a stricter new law took <br />effect in 2005. Still, when the filings <br />from 2007 were compared with <br />those from 19911those of otder <br />Americans, as a percentage of all <br />filings, have sutged. <br />tn past generations, older <br />Americans, were more finanaally <br />secure," says Elizabeth Wacren, a <br />Hatvard Ww professor and co-au- <br />thor of the Consumer B~tcy <br />Project study. "Now, instead o go- <br />ing into tetirementloaded witb as- <br />sets, Americans are hitting tlieir re- <br />tirement yeacs .loaded with debt" <br />In pievious decades, Warren <br />notes, Social Securiry helped lift <br />millions of oldec Amencans uito a <br />solidly middle-class life. But now, <br />with the rising cost of food, drugs <br />and housu'~g,Sacial Security often <br />doesn't go far enough. <br />For the elderly, bankruptcy is a <br />particular concern because it's <br />rypically harder for seniors, usually <br />lacking in well~p aying job opportu- <br />niries, to climb ba~c owt of it <br />"T~ey have so }ittle time to start <br />over and build up savings, and they <br />have few or no job opportunities," <br />says Susan Reinhard, director ofthe <br />AARP Public Policy lnstitute. "°fhe <br />aonnection between health and <br />economic security is a big issue for <br />older Americans." <br />- 000(l6~ <br />