Retirees are experiencing a disconnect between net worth, cash on hand

Baby boomers hold more wealth than any generation in American history, but for many retirees, a high net worth does not necessarily translate into enough money to cover monthly expenses. A new report from Fortune highlights a growing disconnect between the assets older Americans have accumulated and the cash they have available as they enter retirement. Boomers have benefited from decades of rising home values and stock markets, helping the generation amass nearly $90 trillion in wealth. Yet that prosperity is far from evenly distributed and many older Americans are carrying significant debt into retirement, the report shows. “Someone’s net worth and cash flow are two very different things,” Ashley Morgan, a Northern Virginia bankruptcy and debt attorney, told Fortune. That distinction is becoming increasingly important as retirees lose regular paychecks and depend on Social Security, pensions and savings while continuing to make payments on credit cards, auto loans and other obligations. Fortune reported that the average boomer carries $92,619 in debt, while more than half of households headed by someone 75 or older had debt in 2022. “We’re seeing more and more people carrying hig...