Managing Your Debt in Retirement

If your debt is anywhere near the $50,000 “red line,” you could have a problem on your hands. The key is to tackle debt systematically – starting before you retire. Here are some ideas of where to begin.

A woman pulls money out of a red wallet.
(Image credit: Getty Images)

If you’re retired or getting ready to retire, sailing off into that sunset takes a lot of preparation. One aspect of retirement that you may not consider is how outstanding debts can hamper your retirement plans. It’s a good time to think about this, because retiree debt is on the rise: In the course of 2020 alone, average retiree debt rose by $9,979 to nearly $20,000 — an increase of 104%.

While some of that increase can be attributed to the COVID-19 pandemic, retiree debt has been rising over time. It’s important for you to look at your outstanding debts right now and take steps to make sure they don’t weigh you down as you head into your golden years.

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Paul Humphrey, CFEd®
Financial Adviser, Humphrey Financial LLC

Paul Humphrey specializes in helping union members and their families plan for their future. He has been in the financial services industry since 1999. He holds FINRA Series 7 and 66 licenses, as well as life and health insurance licenses. Paul is a Certified Financial Educator through the Heartland Institute of Financial Education. Humphrey Financial LLC is an independent financial services firm built on a stable foundation of consideration, care and knowledge.