While retirement is generally celebrated as a period to enjoy relaxation, adventuring and peace, this is often not the case for many people in Virginia. Along with the extended freedom, comes the obligation to continue financing everyday needs but on a much more limited budget and with restricted access to financial rewards. With the right tools and some keen money management skills, people can avoid having to declare bankruptcy in the years when they should be living life to its fullest.
According to data gathered by the Consumer Bankruptcy Project, since 1991, the number of elderly people who have filed for bankruptcy has tripled. Unlike in times past when elderly folks had a variety of initiatives to draw upon when entering their retirement phase, more and more of their financial funding is being left to themselves to manage. For example, pensions use to provide a significant kick back for folks who were no longer working. However, since many companies have done away with pensions in an effort to minimize costs, elderly people are left to make up for the difference by themselves.
With access to Social Security, 401Ks and Medicare still available, many retirees underestimate just how little those resources will actually provide. In many cases, insurance costs may not be covered fully or even at all by Medicare. This means that people have to pay all costs out of pocket. With rising percentages in debt and reduced earnings, many retirees are in a dire position when it comes to funding their financial future.
If people are on the verge of having to file for bankruptcy, they may benefit from the help of an attorney. A legal professional may be able to provide them with other options to consider before making such a critical decision.
Source: The Week, "Why retirement is breaking the elderly," Jeff Spross, Aug. 7, 2018