Why Bankruptcy Rates for Seniors Have Tripled

Why Bankruptcy Rates for Seniors Have Tripled?

Jul 24, 2018

One Medical Emergency Away From Bankruptcy

Even for seniors who had sufficient income to cover their living expenses, one major medical expense can throw the most well-planned retirement into financial crisis. And while bankruptcy may represent a fresh start for those 45 and under, senior over 65 simply don't have the same financial stamina, according to a recent study from the Consumer Bankruptcy Project. The study revealed that many seniors struggled with high interest rates on credit cards, aggressive debt collectors, high Medicare premiums and gaps in coverage. 

The Safety Net For Seniors is Shrinking

Over the past 30 years, there has been a major shift in the burden of financial responsibility from corporate-sponsored pensions and government-supported health care programs to self-funded 401K plans and health care options with higher premiums, deductibles and co-pays. Increasing medical bills, decreasing pension programs, declining incomes and insufficient savings are a major part of the problem. Meanwhile, the age at which senior can collect Social Security and Medicare benefits continues to rise. In addition, typical at-home senior care services are not covered by Medicare. And to add insult to injury, seniors represent an age group least equipped to deal with this change in circumstances. It's a vicious cycle.

There is Help 

The good news is that there is support and there are resources for local seniors through the Summit Senior Coalition. This collaborative of non-profit organizations and government agencies work in cooperation to provide services to older persons not adequately served by other public and private systems. The coalition helps provide a comprehensive program of senior services – including meal programs, transportation, home health care and homemaking assistance, legal and financial planning assistance, adult day care, home repair and much more. Assistance is free to residents of Summit County. Contact the Summit Senior Coalition today for an in-home assessment. Call 800.421.7277.