Statistics Schmatistics

So I’m reading this front-page article in today’s USA Today, called “Retirees Up Against Debt.” And I get to a paragraph toward the end of the article in which the author writes about seniors (here defined as those 55 and older. Doug will be 55 this year…) who still have mortgages. When he talks about “housing debt,” he’s referring to first mortgages, home equity lines of credit, reverse mortgages, etc.

We all know that a sound financial goal should be to have all mortgage debt paid off before retiring, if not long in advance of that. Still, at age 54, we think of ourselves as having “a few good years left” to resolve outstanding debt. Not too many, mind you. But a few.

With that in mind, I was surprised at the statistics the Employee Benefit Research Institute released regarding housing debt. Here’s the sentence that’s got me scratching my head: “From 1992 to 2004, the percentage of households 55 or older with housing debt rose to ___% from ___%. The median amount of mortgage debt rose 63% during this time, to $_______.”

Anyone want to take a stab at filling in those blanks? How many households ages 55 and older, expressed by a percentage, do you think have ANY mortgage debt? And what do you think is the median amount of that debt?

This doesn’t included credit card debt or any other type of loan. Only mortgage related.

Hint: I think the Employee Benefit Research Institute is wrong.

Posted by Katy on 01/23/07 at 07:10 PM

Fallible Comments...

I wouldn't have any idea how to fill in those blanks - our local prices are so skewed that it's hard to have any idea what "average" is - the median house price in my county is over $600,000 (actually, I just checked and I underestimated - the median price of resale single-family homes is currently 710,000 and was as high as 770,000 last summer).

But around here, I wouldn't be surprised if mortgage amounts were rising for those over 55 - with house values so high, it seems like every other house on a street is being remodeled, especially older homes. I think that most of these people are taking advantage of their built-up equity, refinancing and remodeling, in anticipation of selling in the future for a huge profit.
Posted by Chris(tine) on 01/23/07 at 11:17 PM
Chris(tine)--Our prices here (KC) aren't skewed by your standards--unless they're skewed to the low, conservatively valued side. The median price of an existing home here is appx $160,000.

I'll fill in the blanks and see what you think:
"From 1992 to 2004, the percentage of households 55 or older with housing debt rose to 36% from 24%. The medain amount of mortgage debt rose 63% during this time, to $60,000."

So, this is saying that ONLY 36% of people 55 and older have ANY mortgage-type debt. And that of those, the median amount of mortgage debt is ONLY $60,000. I find it impossible to believe, frankly. I know a lot of folks my age, and I'm not sure any of them have their homes completely paid off.

Any opinions from the fallible gallery? Do these figures sound right to you? The article was trying to make it sound like these numbers were frightening, but I'd feel like my gen was in GREAT shape if we were doing this well! I don't see how it could be correct.
Posted by Katy on 01/23/07 at 11:48 PM
The only way I can imagine those figures are correct is that LOTS of boomers' parents are still living in their own paid off homes.
Posted by Anne on 01/24/07 at 01:00 AM
Those numbers are very hard to believe. I think Anne might be onto something - maybe we're not really aware of how many people (and multiple generations) there are who are over 55? Maybe the problem is with calling 55 the age of retirement...
Posted by Chris(tine) on 01/24/07 at 06:23 AM
I don't know, Katy. We're in our fifties. We live in an apartment because we love the convenience of our neighborhood, but we cannot afford to buy a house here. The new houses are selling for $500,000, and the older houses that need tons of work (translate: time and money) are $200,000) If we want to buy an affordable house, we have to move at least 20 miles north and commute to EVERYTHING. Meawhile I just had to write a HUGE check to Uncle Sam, grrrrh.

I've given over the worring about our retirement to God.
Posted by Suzan on 01/24/07 at 02:20 PM
Anne--Hey! How are you and your family doing these days?? You must be right. Doug and I lost our fathers 30 and 23 years ago. Our mothers sold their homes and have been in assisted living for years. I guess my personal experience prevents me from realizing how many elderly live in their own paid-off homes.

Chris(tine)--They didn't call 55 the age of retirement, but the age of seniority. So the 55s and up were included in this stat. The article's main focus was on those over retirement age (62+) and how they are in WAY too much debt. We have some debt, but are working to resolve it completely before retirement! We'll see, huh?

Suzan--We wrote the huge checks, too. Yikes!!! I like your apartment-living strategy. We live in a 12-year-old house we built on three acres. We love it still, but it's getting too be too much for me. Simplify!! That's the goal, but it ain't easy.

Do you think God can worry on my behalf, too? ;) We may be moving to Panama or someplace cheap when the time comes....
Posted by Katy on 01/24/07 at 03:06 PM
Katy, yeah, God has really big shoulders, so go ahead and dump it on Him!

Panama, umm.........

Hubby is currently building us a travel trailer for two, because every time we travel, my chemical sensitivity kicks in from hotel rooms and I'm a mess. Who knows, maybe he'll have to insultate it someday and we'll park it somewhere permanently. Cozy is an understatement, but hey, who needs stuff anyway? Just give me a laptop, a coffeemaker, and a Sony Reader, and I'm happy!
Posted by Suzan on 01/24/07 at 06:59 PM
Yeah, I don't think that can be right, Katy. I'm not *in* that age group yet, but my Mike is 55. We have a good life, probably a *normal* amount of debt, and a mortgage that's NO WHERE NEAR PAID OFF! Hey, even my parents - in their mid-sixties have mortgage debt more than that!
Posted by Staci on 01/24/07 at 07:21 PM
Suzan--I really am getting better at trusting Him in my older age. Better, but still not great. Thanks for being a good example for me! Hey, if you have any pics in progress of the trailer you guys are building, I'd love to see them!! Your list of material requirements sounds like mine, except I honestly have never even seen a Sony reader. I need a clue! I know I could be happy with WAY less stuff, but right now, I've still got...more than that. :)

Staci--Our mortgage is about 2/3 paid off. Girl, I can't believe I revealed something so fiscally "personal" on the Internet! But there it is. We're getting there, but these high expense years (college educations and a wedding) are stretching us big time! Sure is great to have (almost) three graduates and and a pay-as-you-go wedding in the works, though!
Posted by Katy on 01/25/07 at 09:41 PM

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Personal blog of christian writer & fallible mom Katy McKenna Raymond in Kansas City, Missouri Katy is represented by Greg Johnson at WordServe Literary Read more Katy at LateBoomer.net Follow Katy on Twitter Follow Katy on Facebook 123 Recent Posts Try Becoming Brenda Starr Off Beat Scattered That’s It So I’ve Finally Signed With An Agent. Now What? The Spoon Sciatica Sweetheart A Woman’s Train of Thought Has No Caboose However much we own, we are all still living on borrowed time After all, when restaurants shrink portions, they don’t shrink prices. As with everything in life, balance is key. Slow down, you move too fast… Yeah, I know. I have issues. Search Advanced Search Syndicate Login E me at katy @ ngenius.com	Statistics Schmatistics So I’m reading this front-page article in today’s USA Today, called “Retirees Up Against Debt.” And I get to a paragraph toward the end of the article in which the author writes about seniors (here defined as those 55 and older. Doug will be 55 this year…) who still have mortgages. When he talks about “housing debt,” he’s referring to first mortgages, home equity lines of credit, reverse mortgages, etc. We all know that a sound financial goal should be to have all mortgage debt paid off before retiring, if not long in advance of that. Still, at age 54, we think of ourselves as having “a few good years left” to resolve outstanding debt. Not too many, mind you. But a few. With that in mind, I was surprised at the statistics the Employee Benefit Research Institute released regarding housing debt. Here’s the sentence that’s got me scratching my head: “From 1992 to 2004, the percentage of households 55 or older with housing debt rose to ___% from ___%. The median amount of mortgage debt rose 63% during this time, to $_______.” Anyone want to take a stab at filling in those blanks? How many households ages 55 and older, expressed by a percentage, do you think have ANY mortgage debt? And what do you think is the median amount of that debt? This doesn’t included credit card debt or any other type of loan. Only mortgage related. Hint: I think the Employee Benefit Research Institute is wrong. Posted by Katy on 01/23/07 at 07:10 PM Fallible Comments... I wouldn't have any idea how to fill in those blanks - our local prices are so skewed that it's hard to have any idea what "average" is - the median house price in my county is over $600,000 (actually, I just checked and I underestimated - the median price of resale single-family homes is currently 710,000 and was as high as 770,000 last summer). But around here, I wouldn't be surprised if mortgage amounts were rising for those over 55 - with house values so high, it seems like every other house on a street is being remodeled, especially older homes. I think that most of these people are taking advantage of their built-up equity, refinancing and remodeling, in anticipation of selling in the future for a huge profit. Posted by Chris(tine) on 01/23/07 at 11:17 PM Chris(tine)--Our prices here (KC) aren't skewed by your standards--unless they're skewed to the low, conservatively valued side. The median price of an existing home here is appx $160,000. I'll fill in the blanks and see what you think: "From 1992 to 2004, the percentage of households 55 or older with housing debt rose to 36% from 24%. The medain amount of mortgage debt rose 63% during this time, to $60,000." So, this is saying that ONLY 36% of people 55 and older have ANY mortgage-type debt. And that of those, the median amount of mortgage debt is ONLY $60,000. I find it impossible to believe, frankly. I know a lot of folks my age, and I'm not sure any of them have their homes completely paid off. Any opinions from the fallible gallery? Do these figures sound right to you? The article was trying to make it sound like these numbers were frightening, but I'd feel like my gen was in GREAT shape if we were doing this well! I don't see how it could be correct. Posted by Katy on 01/23/07 at 11:48 PM The only way I can imagine those figures are correct is that LOTS of boomers' parents are still living in their own paid off homes. Posted by Anne on 01/24/07 at 01:00 AM Those numbers are very hard to believe. I think Anne might be onto something - maybe we're not really aware of how many people (and multiple generations) there are who are over 55? Maybe the problem is with calling 55 the age of retirement... Posted by Chris(tine) on 01/24/07 at 06:23 AM I don't know, Katy. We're in our fifties. We live in an apartment because we love the convenience of our neighborhood, but we cannot afford to buy a house here. The new houses are selling for $500,000, and the older houses that need tons of work (translate: time and money) are $200,000) If we want to buy an affordable house, we have to move at least 20 miles north and commute to EVERYTHING. Meawhile I just had to write a HUGE check to Uncle Sam, grrrrh. I've given over the worring about our retirement to God. Posted by Suzan on 01/24/07 at 02:20 PM Anne--Hey! How are you and your family doing these days?? You must be right. Doug and I lost our fathers 30 and 23 years ago. Our mothers sold their homes and have been in assisted living for years. I guess my personal experience prevents me from realizing how many elderly live in their own paid-off homes. Chris(tine)--They didn't call 55 the age of retirement, but the age of seniority. So the 55s and up were included in this stat. The article's main focus was on those over retirement age (62+) and how they are in WAY too much debt. We have some debt, but are working to resolve it completely before retirement! We'll see, huh? Suzan--We wrote the huge checks, too. Yikes!!! I like your apartment-living strategy. We live in a 12-year-old house we built on three acres. We love it still, but it's getting too be too much for me. Simplify!! That's the goal, but it ain't easy. Do you think God can worry on my behalf, too? ;) We may be moving to Panama or someplace cheap when the time comes.... Posted by Katy on 01/24/07 at 03:06 PM Katy, yeah, God has really big shoulders, so go ahead and dump it on Him! Panama, umm......... Hubby is currently building us a travel trailer for two, because every time we travel, my chemical sensitivity kicks in from hotel rooms and I'm a mess. Who knows, maybe he'll have to insultate it someday and we'll park it somewhere permanently. Cozy is an understatement, but hey, who needs stuff anyway? Just give me a laptop, a coffeemaker, and a Sony Reader, and I'm happy! Posted by Suzan on 01/24/07 at 06:59 PM Yeah, I don't think that can be right, Katy. I'm not in that age group yet, but my Mike is 55. We have a good life, probably a normal amount of debt, and a mortgage that's NO WHERE NEAR PAID OFF! Hey, even my parents - in their mid-sixties have mortgage debt more than that! Posted by Staci on 01/24/07 at 07:21 PM Suzan--I really am getting better at trusting Him in my older age. Better, but still not great. Thanks for being a good example for me! Hey, if you have any pics in progress of the trailer you guys are building, I'd love to see them!! Your list of material requirements sounds like mine, except I honestly have never even seen a Sony reader. I need a clue! I know I could be happy with WAY less stuff, but right now, I've still got...more than that. :) Staci--Our mortgage is about 2/3 paid off. Girl, I can't believe I revealed something so fiscally "personal" on the Internet! But there it is. We're getting there, but these high expense years (college educations and a wedding) are stretching us big time! Sure is great to have (almost) three graduates and and a pay-as-you-go wedding in the works, though! Posted by Katy on 01/25/07 at 09:41 PM Page 1 of 1 pages Commenting is not available in this weblog entry. 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Personal blog of christian
writer & fallible mom
Katy McKenna Raymond
in Kansas City, Missouri