Over half of older Americans say their debts “stolen them” in their lives, According to new research.
A survey of 2,000 Gen X (55+) and baby boomer Americans looked at how debt affects people who are nearing or retiring, finding that 72% of respondents have accumulated debt.
Credit card debt represents the most common source of debt (45%) for those voted. The average respondent reported having a balance of nearly $9,000 on their card and paying $418 a month for that.
One in three (30%) said they had a mortgage debt. The average respondent’s total liability in the area was found to be nearly $72,000 with an average monthly payment of $797.
As healthcare costs tend to expand as Americans age, it’s no surprise that one in five (17%) averages $9,144 in medical liabilities, paying $222 for this every month.
Auto loans add to the financial burden of older people
Additionally, 22% of respondents have an average balance of around $17,000 on car loans, and pay them $446 per month.
Talker Research National debt reliefthe survey investigated the best barriers to paying off debts and found that among those with outstanding debts, the biggest barrier is inadequate income.
46% of those voted say they feel they are not making enough money to successfully repay their debts.
It was followed by respondents who said that the other most common barrier to getting out of debt was high interest rates (30%) and that they could only pay the absolute minimum monthly payment (26%).
“Our findings reveal that the country’s consumer debt epidemic has affected financial futures for millions of older Americans, threatening to put retirement out of reach for decades.” “The unpredictable financial challenges experienced with age can easily escalate to overwhelming debt amid the costs of modern living, and it is essential for older people to know that reputable debt relief solutions are available.”
Regarding savings, the average debt respondent could bank $29,187, with 61% reporting that “arguably” not enough to live comfortably for the rest of their lives.
Almost half of debt (49%) reported savings below $20,000 and zero savings.
According to respondents, the two factors that have the most impact on their ability to save money are inflation (72%) and debt repayment (36%). Similarly, respondents most frequently chose the cost of living (69%) and the economy (45%) as their biggest financial concerns of the future.
This may explain why 48% of all currently employed respondents feel that they are not set up for successful retirement.
Coupled with these other challenges, debt has become a major obstacle to the financial health of older adults, with two in three respondents (68%) saying they have a very or slightly affected their ability to retire, with 62% saying they do not expect debt at this stage of their lives.
This puts many retirement plans on hold, with 67% of retired respondents saying they need to continue working until the year they thought they would retire to support themselves and their families.
“Retirement debt is not just a personal challenge, it is a social issue with widespread impacts across already tense families, communities and public systems,” said Dr. Kayley Rank, director of university research at American Financial Services.
Retirement debt is an increase in social issues
“The research shows that many older people are in great debt in later years, but it’s not too late for people to make meaningful progress towards their retirement goals and control their financial future through reliable professional guidance and educational resources.”
Advances in Social Security Month in April, the study aimed to understand how older Americans feel about it, and found that 82% of respondents reported concern about the future of Social Security.
For those in debt, 76% said they didn’t think Social Security payments were enough to support them through retirement.
The survey also asked respondents. If you can go back in time and give financial advice to your young self, what would it be?
The answer was overwhelmingly discovered that one person was a repetition of “saving more and less money”: “Don’t fall into credit card debt.”
Research method:
The Talker survey looked at 1,000 Gen X Americans (minimum age of 55) and 1,000 baby boomer Americans. The investigation was commissioned by National debt relief Managed and implemented online by Talker Research February 19th to February 26th, 2025.
