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Retirees face cash shortfalls despite high net worth
A Fortune report cited by HousingWire says the average boomer carries $92,619 in debt, even as fixed retirement income often struggles to cover expenses like healthcare and property taxes.
A new report highlights a growing mismatch for many older Americans, where high net worth does not always translate into enough cash flow to cover monthly expenses in retirement, according to Fortune and as summarized by HousingWire.
HousingWire reports that baby boomers hold nearly $90 trillion in wealth, but many are also carrying meaningful debt. The outlet cited Fortune data showing the average boomer has $92,619 in debt, and that more than half of households led by someone 75 or older had debt in 2022.
Fixed sources of income such as Social Security, pensions, and savings can be strained by ongoing obligations, HousingWire said, including credit card payments, auto loans, healthcare costs, property taxes, and long-term care expenses. It added that some retirees also take on debt to support children and grandchildren, or work longer than planned because retirement finances fall short.
For homeowners with substantial equity but limited monthly income, HousingWire notes reverse mortgages as a potential option to access home equity for cash. The outlet also cautioned that experts warn about potential costs and inheritance implications, and it said eligibility and loan requirements, such as maintaining the home and paying property taxes, still apply.