The new retirement problem is Over 60 With Decades Left on the Mortgage.

A growing number of older Americans are carrying mortgage debt, and it will likely become more burdensome as the coronavirus crisis puts millions out of work and eats away at retirement accounts.

Many are still hurting from the financial crisis, which hit millennials when they were starting their careers and boomers during what were supposed to be their prime earning years.

In the U.S., some 9.18 million homeowners age 65 and over have mortgage debt, according to federal data analyzed by the Urban Institute. That’s up nearly 60% from 5.82 million a decade ago.

Housing Prices vs Wages vs CPI

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This chart explains why the median mortgage debt has quadrupled since 1980.

Housing prices have dramatically outstripped wages and the CPI. That's the problem for those who kept trading up or refinancing.

Those carrying a mortgage and depending on "inflation-adjusted" Social Security checks are likely to have a huge problem.


This setup is even more problematic for those unable to retire and now out of work due to the coronavirus.

The Huge Fear: How Do I Pay the Bills?

The huge fear now is How Do I Pay the Bills?

On April 6 in How High Will the Unemployment Rate Rise in April? I came up with an unemployment rate of 21-22% looking at job losses sector-by-sector.

In the last three week there have been 16.78 Million Unemployment Claims.

Unemployment claim analysis also leads to a 20% unemployment rate.

This is a huge debt deflation setup. How do the bills get paid?

This is yet another reason the Covid-19 Recession Will Be Deeper Than the Great Financial Crisis.

There will not be a V-shaped recovery.

Mike "Mish" Shedlock

Debt Counselor Phones at "Capacity" in Australia over Mortgage and Rent Issues

Too Much Debt: Financial helpline counselors are at capacity as record numbers of older Australians struggle in poverty.

Over 65 And Needing A Job; Interview Tips For Everyone

Over 65, out of work and desperate for a job? So are record numbers of people who thought they would be retired but now find they cannot afford to.

Debt and Deleveraging: Did the U.S. Overcome the Debt Crisis?

Citing the latest report on “Debt and Deleveraging” by the McKinsey Global Institute

Shocking Look at Average vs Median Household Savings

I have been on a rampage about average vs median income. Here's a report about average vs median savings.

Tweets of the Day: Volatility, Mortgage Delinquencies, Iran, Debt

Here are some tweets, from people I follow, worth discussion consideration. Topics vary widely.

Fed's Dilemma: Debt-to-GDP Ratios Dramatically Understate the Debt Problem

Reader Lars writes, 'Debt-to-GDP ratios understate the true nature of the problem.' He uses Greece as an example.

Household Debt Hits Record High $13.29 Trillion Led by Mortgages, Student Loans

A New York Fed report shows household debt hit a new record high of $13.29 trillion in the second quarter.

Deleveraging? Not Quite: Household Debt Quarterly Report

The Fed's household debt quarterly report shows no aggregate deleveraging although mortgage debt is below the 2008 peak.

Australia's Housing Market Over 4 Times Size of Economy, US is Under 2

Congratulations to Australia for having the biggest housing market relative to the size of its economy.