HYANNIS – A new economic study of U.S. states has found that Massachusetts poses the third greatest risk of bankruptcy for its senior citizens, coming in behind California and Alaska.
The study, conducted by personal finance publisher Moneywise, analyzed 11 factors including poverty rates, debt-to-income ratios, healthcare expenses, and cost of living to produce a metric assigning risk on a scale of 1-100, with Massachusetts scoring 65.92 on the scale.
Massachusetts’s placement is partly attributable to its high healthcare expenses, which Moneywise cites as the third highest in the nation.
Regional neighbors New York, New Hampshire, Vermont, and Maine were also included in the top ten as high-risk states for seniors.
“The dream of a secure retirement can quickly become a nightmare for seniors facing overwhelming debt,” said Kris Bruynson, VP of Marketing and Product for Moneywise. “Unaffordable mortgages, overspending, and rising healthcare costs can all contribute to a financial crisis.”
“But for older adults, bankruptcy can be especially devastating, instantly wiping away a lifetime of savings,” he said. “The vulnerability of elderly debtors is particularly concerning. As people age, their ability to earn income often decreases while healthcare expenses can skyrocket. This can leave retirees with a crushing burden of debt and few options for managing it.”
The study highlights a worrying trend of elderly bankruptcy, with seniors making up 8% of bankruptcy filers.
More from Moneywise can be found on their website here.
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