As the US population continues to age rapidly , it is having to confront the increasingly reality of bankruptcy during retirement . Long standing patterns of shrinking pensions , rising medical costs and poor savings have taken their toll but the rate of those over 65 filing for bankruptcy is three times what it was in 1991 , according to a recent study . He said he had been on disability since 1991, when a double pack of 12-foot drywall fell on his head at work. The research , conducted by the Consumer Bankruptcy Project , suggests that this is a result of a three - fold shift of financial risk from the government and employers to individuals , as the social safety net has shrunk . Such a shift has been evidenced by delays in Social Security benefits , the advent of 401(k ) saving plans and increased out - of - pocket spending on health care . Reinforcing this dangerous situation is the risk that older adults have fewer places to turn when are in trouble , with the bankruptcy court often offering the only solution . Worst still , it only requires a small issue to begin this cycle . Although bankruptcy can be weathered by the younger generation , those over 65 do not have enough time to recover . This comes at a time when the current rate of bankruptcy per 1,000 people between 65 - 74 stands at 3.6 , up from 1.2 in 1991 . The percentage of those filing bankruptcy who are over 65 has risen from 2.1 percent of claims to 12.1 percent . An increase in those filing for bankruptcy can also be seen in the next generation . For those over 65 who responded to the survey , the bankruptcies were often the result of multiple factors , with 3 in 5 citing medical costs . Separate research has shown that the median household for those over 65 had liquid savings of $ 60,000 , a figure which falls to $ 3,620 for the bottom 25 percent of households . Although many Americans turn to Medicare for their medical bills gaps in coverage , high premiums and requirements that patients shoulder some costs force many lower - income beneficiaries to spend more of their own income on those bills . By 2013 , the average Medicare beneficiary ’s out - of - pocket spending on health care consumed 41 percent of the average Social Security payment . The final trouble is that many Americans are carrying significant debts , such as a mortgage or their children ’s student loans , into their retirement at a cost that Social Security can not cover .
As the US population continues to age rapidly , it is having to confront the increasingly reality of bankruptcy during retirement . Long standing patterns of shrinking pensions , rising medical costs and poor savings have taken their toll but the rate of those over 65 filing for bankruptcy is three times what it was in 1991 , according to a recent study . The research , conducted by the Consumer Bankruptcy Project , suggests that this is a result of a three - fold shift of financial risk from the government and employers to individuals , as the social safety net has shrunk . Such a shift has been evidenced by delays in Social Security benefits , the advent of 401(k ) saving plans and increased out - of - pocket spending on health care . Reinforcing this dangerous situation is the risk that older adults have fewer places to turn when are in trouble , with the bankruptcy court often offering the only solution . Worst still , it only requires a small issue to begin this cycle . Although bankruptcy can be weathered by the younger generation , those over 65 do not have enough time to recover . This comes at a time when the current rate of bankruptcy per 1,000 people between 65 - 74 stands at 3.6 , up from 1.2 in 1991 . The percentage of those filing bankruptcy who are over 65 has risen from 2.1 percent of claims to 12.1 percent . An increase in those filing for bankruptcy can also be seen in the next generation . For those over 65 who responded to the survey , the bankruptcies were often the result of multiple factors , with 3 in 5 citing medical costs . Separate research has shown that the median household for those over 65 had liquid savings of $ 60,000 , a figure which falls to $ 3,620 for the bottom 25 percent of households . Although many Americans turn to Medicare for their medical bills gaps in coverage , high premiums and requirements that patients shoulder some costs force many lower - income beneficiaries to spend more of their own income on those bills . By 2013 , the average Medicare beneficiary ’s out - of - pocket spending on health care consumed 41 percent of the average Social Security payment . The final trouble is that many Americans are carrying significant debts , such as a mortgage or their children ’s student loans , into their retirement at a cost that Social Security can not cover .