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Retiring With Debt

By: Michael Millington

Paying off large portions of debt at any point in life can be tedious. Big payments being due can be detrimental for anyone just looking to make ends meet. However, this is made doubly so when you factor in retirement. Is it possible to make debt payments on a regular basis with a retiree’s income? Here we will discuss what to look forward to should this become a reality and how to potentially avoid this future.


The Big Answer

We’ll get right to the main question: should you carry debt into retirement? I think the obvious answer is a resounding “no”, with debts being dynamic numbers that constantly change, it can definitely put a strain on the slow stream of income coming in on a monthly basis. Debt can manifest itself in multiple ways, but here are a couple you should pay attention to.


Detecting Fraud

One of the worst things that can happen to anyone, let alone those who only collect SSN cheeks every month, is to have an imaginary debt brought against you when you haven’t signed up for anything. This can easily wipe what little you have to live off of after you’ve finished working. The best thing you can do if you suspect fraud is at work is to stop it in its tracks as soon as possible.


Family Matters

An often overlooked but very real issue is a parent’s propensity for helping their children financially. As a parent you should be very wary about how much help you give to your children. Aside from allowing them the ability to handle the debt themselves, limiting (or negating) the financial help you provide will result in more money for your own retirement fund.


To Sum Up

Retirement shouldn’t be encumbered with issues that can be handled in your working days. Debt should not be a thing to worry about when living on a fixed income (whether way too much or easily handled). Doing anything to help eliminate debt before you reach retirement should be a priority.