Savings Down, Debt Up, Payday Loans Considered by Baby Boomers

Historical archive, first published 2006 — payday-lending laws and rates have changed since. Preserved for the record.

 
Mark Jacobsohn of Relayer Benefits Group, an insurance and consulting firm, is concerned. When it comes to the nation's debt problems, he points to the 77 million baby boomers who will retire in the next 15 years. They aren't saving enough money for retirement.

"There's a feeling that something will be there to take care of them, such as Social Security or Medicaid," says Jacobsohn. "They don't realize they'll have to spend down their savings in order to qualify."

"People are living much longer and, thanks to medical advances, are surviving things (cancer, heart attacks, strokes), that would have been fatal 10 years ago," says Jacobsohn. "What is life-enhancing for a person, however, can be catastrophic for a retirement plan."

It's an odd problem. Living longer is a good thing. But not planning ahead and, therefore, needing to rely on cash loans? Not as good.