A vast majority of pre-retirees between 51 and 61 years of age are approaching retirement with sizable amounts of debt and will carry debt with them beyond their working years.
That's according to a new report from the Filene Research Institute, Financial Capability Near Retirement: A Profile of Pre-Retirees. The authors used financial capability data from the 2012 National Financial Capability Study to highlight the troubling prevalence of long-term debt among individuals approaching retirement.
Sixty percent of pre-retirees had at least one source of long-term debt, and 26% had at least two, according to the report. Nearly 40% used credit cards extensively and the same percentage felt heavily indebted. Filene found the most important factor driving the increase in debt is the much higher value of primary-residence mortgages.
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