According to HelloWallet, a DC based firm that offers technology-based financial advice, many Americans will face a decline in their standard of living when they retire. According to a report released by HelloWallet, the amount that Americans are allocating each month towards paying down their debt has increased by 69%. Households headed by people 55 to 64 spend 22% of their income paying off old loans.
- “My work confirms that people are reaching the threshold of retirement much more in debt than in the past.” – Olivia S. Mitchell, Professor of Insurance/Risk Management and Applied Economics/Policy, and Executive Director of the Wharton’s Pension Research Council at the University of Pennsylvania
- “Individuals should consider their full balance sheet and financial picture, which for many households may mean saving for retirement through a 401(k) plan while also paying down student loans, taking out a mortgage to buy a house, or borrowing to send their children to college.” – Mike McNamee, chief public communications officer for the Investment Company Institute
- “We raised the victory flag as people increased retirement contributions, but in reality the ability of people to retire is a function of lots of different variables, most important of which is what they are doing on the other side of the ledger.” – Matt Fellowes, founder and chief executive of HellowWallet and a former Brookings Institution scholar
Read the full Washington Post story here