Seniors Spending More Money on Credit Cards and Mortgages
According to new research from the National Center for Policy Analysis, senior citizens are spending more on mortgage loans and credit cards than ever before. The study compares data from 1989 to 2010 to assess how finances among the nation’s 42 million seniors have shifted over time.
The average credit card balance for 65 to74 year olds in 1989 was $2,100, but that figure jumped to $6,000 in 2010. There was no average balance determined in 1989 for those 75 and older, but it was $4,600 in 2010.
More seniors are taking out mortgage loans in recent years. Reports indicate that 21% of 65 to 74 year olds carried some sort of mortgage payment in 1989, but has risen to 37% in 2010. For seniors 75 years or older, the number went from 6% to 21% for the same period.
Despite these concerning statistics, seniors have done well with their net worth and distribution of wealth. The number of mortgages and credit card accounts in 2010 could be a result of the economic fall of 2008, or it may show the need for a stronger social security system in America. Whatever the case may be, these numbers reflect how seniors are spending their money and what they will likely be doing with it in the future.