Although Millennials are known as the spendy avocado toast generation, an article from Forbes points out that “seniors [are now] filing for bankruptcy.” Whereas in 1991, only 2% of bankruptcy relief claims in the US were from elders, the number is now up to a staggering 12%.
In the article, Teresa Ghilarducci explains that elder bankruptcy isn’t a simple issue. Rather, several factors have contributed to the so-called “‘graying'” of bankruptcy, including pension eliminations, and medical care costs (although those are debated).
Ghilarducci also points out that according to a Financial Times report on the same subject, some elders will file for bankruptcy for relief from creditors’ incessant contact. In some cases, going to court may not be necessary for these elders, but anxiety presumably overtakes them.
Have you had any experience with elder debt, or a client managing money for their parents? How do you keep your senior clients in control?