In an idealistic world, as people age their debt would shrink and savings grow to help carry them through their retirement. Unfortunately for many U.S. Baby Boomers, that is more fantasy than reality according to the findings of a study from LendingTree.
People born from 1946 to 1964 are defined by the U.S. Census Bureau as Baby Boomers. By the way, Baby Boomers are the only population cohort so designated – there are no official age ranges for Gen Xers, Gen Yers, Gen Zers or Millennials.
The study from LendingTree found that the typical Boomer has $25,785 median non-mortgage debt. Auto loans make up 38.5 percent of this total and credit cards 34.9 percent. Unlike typical mortgage debt on a home where the underlying asset often maintains or increases in value, most non-mortgage debt is on expenditures that are immediately consumed (such a dinner, airplane ticket or hotel), or are on assets that often rapidly depreciate (such as automobiles).
To identify the metros with the greatest (and least) incidence of debt, LendingTree calculated the median non-mortgage debt among Baby Boomers for the 100 largest U.S. metros. The following two tables show the 10 metros with the greatest and least amounts of debt per Baby Boomer. Five of the top-10 debt burdened metros are in Texas.
To read the complete report from LendingTree and view the entire ranking of the 100 largest metros click https://www.lendingtree.com/debt-consolidation/where-baby-boomers-carry-the-most-non-mortgage-debt/
Regardless whether the rank is high or low on the list metros, this amount of debt for an aging group is somewhat alarming as these people are either approaching retirement or have already retired. Now consider that the study reports the median debt PER BABY BOOMER. That means that the typical couple has double this amount of non-mortgage debt – plus perhaps a housing loan to boot.
It is estimated that 10,000 Baby Boomers retire each and every day.