New research shows more people 65 years old and older are filing for bankruptcy instead of retiring.
The biggest cause of bankruptcies, according to a recent CNBC report, are medical bills.
“Insurance, no matter what kind of insurance one has, typically only goes so far," says bankruptcy judge William J. Lafferty. "And when one has to actually start paying for those expenses, they rack up very quickly. It’s an immediate game changer for most families.”
Another large factor is losing a job.
“It’s probably a lot harder when you are 65, and you’re not sure if you’re going to have a job again," says Lafferty. "And you’re not sure if that promotion is as likely.”
Whether you've filed for bankruptcy or not, most everyone has something in common.
“It's unfortunately true, across our society, that people don’t save enough.”
Saving money is key. But, if you have filed for bankruptcy and you're 65 and older, it's not the end of the road.
You still get a fresh start. Your credit card debt and medical bills get wiped clean, and if you have a 401k, you're retirement money usually cannot be touched. Qualified savings is yours to use.
