America’s seniors are becoming more likely to fall into debt — and saw the biggest jump in borrowing relative to other groups over the past decade.
The median level of debt among households led by someone 65 and older — the level at which 50% of older households are above and 50% are below — more than doubled between 2000 and 2011 from roughly $12,000 to $26,000, according to a U.S. Census Bureau report released Thursday. While that might not sound like a lot of debt, America’s seniors saw a much bigger jump in percentage terms than any other age group.
The report raises concerns about the financial health of older Americans at a time when more are worried they lack the savings and investments to retire comfortably. The recession took a bite out of many seniors’ nest eggs, mainly through plummeting home values. Meanwhile, fewer Americans are saving as much for retirement even though pensions are disappearing. And the Federal Reserve’s strategy for spurring the economy — low interest rates — has the unintended impact of reducing returns for seniors on safe investments like U.S. Treasury bonds.