For many people, retirement symbolizes well-deserved rest, especially among workers and employees. But this period also remains too often synonymous with a sharp drop in income, with sometimes particularly harmful consequences on the financial balance of seniors. Again, buying back credits is a very attractive solution for adapting spending to new resources.
Retirement Often Causes Financial Problems
Today, for 84% of French people, retirement is automatically accompanied by a fall in income, which can go up to 50% and beyond. And this situation worsens from year to year, due to the aging of the population and a general pension system which can no longer properly fulfill its role. From now on, we must therefore expect to work longer, or have planned additional sources of income, in order to hope to maintain our lifestyle within acceptable limits once retired.
Admittedly, at 60 or 65, we have often finished paying the loan for our house, but it is common to have other loans to repay: household equipment, car, cash, travel. Then more and more seniors find themselves today in the delicate situation of having to borrow to help their children or their grandchildren to pay for long studies, to pass a difficult course in their professional life, to find accommodation or even simply to cope with the vagaries of life. Finally, due to a replacement income generally much lower than their working income, some retirees see their debt ratio explode and therefore find themselves “mechanically” in a situation of over-indebtedness.
Buying back credits to better live your retirement
For all these reasons, the repurchase of credits is essential in order to restore the purchasing power of the elderly, especially at a period when it seems to them legitimate to take a little advantage of life. Because retirement is also a time for leisure, travel and new discoveries. And today, all of this is expensive.
Of course, the repurchase of loans is often accompanied by an extension of the duration of debt, but by reducing their monthly payments, the elderly often live better and longer, to the point that it is no longer a blocking element for lending organizations.
Finally, there is another reason justifying the repurchase of credits when retiring. In recent decades, people have entered the labor market more and more late, generally due to increasingly long studies, and it is therefore common not to have totaled the number of quarters of contribution required to benefit from a full rate retirement. The repurchase of quarters of contribution is then often considered, but it is an expensive choice. A loan restructuring can then release additional debt capacity to finance the operation, which is all the more attractive as the amount spent on the redemption of quarters is tax deductible.