For a limited few consumers, it is merely a manner or re balancing their portfolios to eliminate the debt and live debt free while they are in their retirement. If you are in your 40’s now is the time to focus on paying off all of your debt so that when it comes time to retire, your income is free to spend on whatever you wish! Imagine the freedom.
This same survey indicated that more than 50% identify it as an important issue to save, to pay down the debt they have and to have a plan to pay down their debt. This is the baby boomer group which is retiring or about to retire. Many are not prepared and are not good at meeting their plans if they have them. This survey caught our attention since it really brought home the fact that people in this age group may have to adjust to a lower level of living than what they are used to when they retire.
This may be a tough adjustment for people who are used to working, having a good pay check and then faced with living on a fixed income at a lower level than they are used to. They can easily build up their debt levels even further by not adjusting their living standards and reducing their expenditures.
Most do not have plans and have no idea what they are in for when they retire. Here are a couple of steps that you can follow that will begin to help you get ready for retirement and also organize your finances:
If even one person reads this post and takes some action about paying down their debts, then we will feel it has been worth it to have written this post. Even if we find that people are thinking about saving and paying down debt, we will have made some headway. The best advice we can give to young people is to save 10% of their income towards retirement starting from the time they begin work until they retire.
Unfortunately for us, we fall into the group that still has debt but we do have a plan to get out of debt and be debt free by a specific age. Whether we get there or not is going to depend on the markets, the housing prices and how long we continue working. We would really like to be debt free, but we are not quite there yet.
If you have similar issues or have points you think our readers would appreciate, please leave us a comment.
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Best advice I ever got was to pay down my debts, now I have an excellent credit rating