Many older Americans are willing (or have to) stay in the workforce longer to ensure their retirement security. Working longer allows seniors to delay taking social security benefits, increasing monthly benefit amounts. Continuing to earn income can also be used to pay down debt while socking away extra savings for retirement.
But counting on working longer to make a retirement plan work can be risky. While roughly a third of Americana expect to retire between the ages of 65 and 69 and another third after 70, sometimes a job loss can derail their plans. Although the employment rate for workers 55 and older is as good as any, the long term unemployment rate following a job loss is higher for older workers. Even those who manage to find new jobs, many do not get close to earlier income levels leaving many in dire financial straits.
The loss of income that older Americans count on to tackle remaining credit card bills, medical bills, mortgages or to bolster savings for retirement can be financially devastating, but there are options. Seniors who find themselves in over their heads may consider bankruptcy protection to get a clean slate so that they can keep the savings they do have. Chapter 7 bankruptcy allows older Americans to erase unsecured debt such as credit cards and medical bills that many carry into retirement while protecting retirement assets in 401ks and IRAs alleviating the financial stress in retirement.
If you would like more information regarding bankruptcy protection when retirement comes too early, contact the Peoria bankruptcy law offices of Charles E Covey for assistance.
