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.

The study's authors, Carlo de Bassa Scheresberg and Annamaria Lusardi from the Global Financial Literacy Excellence Center at George Washington University, said while credit unions cannot single-handedly solve these problems, as member-owned cooperatives they can play a crucial role in curbing some of the trends that could lead to poor planning and risky borrowing behaviors.

First, credit unions could work with pre-retirees to address problems of financial fragility and debt before retirement. For instance, they can use in-person and digital tools to address indebtedness and poor planning, not just investment accounts.

Second, financial advice specifically targeted to pre-retirees could be made more effective. The Filene study discussed high debt, light savings, and delayed planning to improve marketing and advisory services.

Third, credit unions can help both pre-retirees and other individuals become aware of the need for retirement planning earlier in their careers. They can encourage members to make regular contributions to retirement accounts and to address debt problems before they become unbearable, the study suggested.

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