Americans Accumulating Debt Faster than They’re Saving
October 24, 2013
The Washington Post article, “Most Americans accumulating debt faster than they’re saving for retirement”, quotes Faculty Affiliate Olivia Mitchell. Mitchell’s work confirms that people are reaching the threshold of retirement much more in debt than in the past. She cites the main reasons for the growing debt as greater spending on housing, larger and more auto loans, and more credit card debt. Mitchell said the debt problem probably would be worse if people were not being encouraged to save for retirement. “Without automatic enrollment in retirement plans, many people would have been deeper in debt and probably facing larger retirement shortfalls than they would have without those automatic saving mechanisms in place,” she said.