When you’re looking to have a happy, secure retirement, there’s really two things you should be doing: One, save as much money as you can so that you can have a higher income during retirement; two, don’t have debt when you retire – or if you do, make sure it’s just your mortgage.
Unfortunately, baby boomers are going in the exact opposite direction. A recent survey shows 40 percent of baby boomers owe over $25,000 in non-mortgage debt, which includes car loans, credit card debt and student loans. In 2007, that figure was 29 percent.
Where it gets really tough is the extreme debt loads: In 2009, 22 percent of baby boomers owe at least $50,000 in non-mortgage debt, up from 12 percent in 2007.
Considering the average 50-year-old only has $50,000 saved for retirement, that’s a big debt number.
