80% of wealth retirees (as defined) carry credit card debt month to month. That makes little financial sense due to high interest rates on credit cards:
The paper identifies a cohort of what it calls “wealthy spenders”: borrowers age 65+, who have median total assets of $1 million but are at risk of financial hardship—despite having wealth in the top third of their age group. Among this group, more than a third of whom have second homes, 80% have credit card debt. Such debt is especially costly today, as the average interest rate has risen to a record 20.7%, according to Bankrate.
80% of This Group of Retiree Millionaires Have Dangerous Credit Card Debt – Barron's (barrons.com)
Commenters suggest, many of this $1 million in assets class likely have their “wealth” tied up in a home or two homes and acquired their wealth “accidentally” by having stayed in their properties for many, many years. (Homes are a good hedge against inflation.) In other words, they did not acquire their wealth through financial discipline and continue to spend money as if they had their pre-retirement income levels. They never learned financial discipline.
