Baby Boomers Plagued by Mortgage Debt as They Enter Retirement

As the Baby Boomer generation heads into retirement, many are plagued with debt, and mortgage debt is their most common financial hardship, according to a ""study"":http://www.securiannews.com/sites/securian.newshq.businesswire.com/files/research/file/RetDebtSummary-Apr2013-F78685-1_pod.pdf released Monday by ""Securian Financial Group,"":http://www.securian.com/Securian/ a St. Paul, Minnesota-based financial services firm.

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Nearly half--49 percent--of current retirees retired with debt. Thirty-eight percent of current retirees hold at least $50,000 in debt.

Among those who are near retirement, 67 percent expect to carry mortgage debt with them into their retirement--the largest debt category cited in the Securian study. This is up drastically from 30 percent in Securian's last study completed in 2009.

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""Mortgage debt is a dark cloud over pre-retirees' financial futures,"" said Michelle Hall, manager of market research at Securian.

Credit card debt was the second-highest source of debt among pre-retirees. About 40 percent of pre-retirees expect to have credit card debt when they retire.

The number of retirees whose debt exceeds their savings and investments is on the rise, according to the study. Forty-two percent of retired survey respondents fell into this category, up from 33 percent in 2009.

Of those headed into retirement, 36 percent expect their debt when they retire to exceed their savings and investments. Twenty-three percent anticipate their debt will be ""much more"" than their savings.

""These numbers are troubling,"" Hall said. ""For retirees on fixed incomes, debt payments are extremely burdensome and become more so as the cost of living rises.""

Securian also noted varying attitudes toward debt. A little more than half--53 percent of survey respondents--said debt is ""something to avoid if at all possible."" However, 19 percent view debt as ""normal.""