Over half of older Americans say their debt has “held them back” in life, according to new research.
A survey of 2,000 Gen X (55+) and baby boomer Americans explored how debt is affecting those who are close to or in retirement and found that 72% of respondents have accumulated debt, with over 50% reporting they are overwhelmed and fear they will never pay it off.
Credit card debt represented the most common source of debt (45%) for those polled. The average respondent reported having close to a $9,000 balance on their cards and paying $418 per month toward it.
Nearly one in three (30%) said they have mortgage debt — the average respondent’s total debt in that area was revealed to be nearly $72,000, with an average $797 monthly payment.
Because medical expenses tend to expand as Americans age, it is no surprise that one in five (17%) also have an average of $9,144 in medical debt and pay $222 toward this on a monthly basis.
Additionally, 22% of respondents have an average balance of about $17,000 in auto loans, paying $446 per month toward them.
Conducted by Talker Research for National Debt Relief, the survey investigated the top barriers to paying off debt and found that, of those with outstanding debt, the largest barrier was insufficient income.
Forty-six percent of those polled say they feel like they don’t make enough money to successfully pay off their debts.
That was followed by respondents saying the other most common barriers to getting out of debt are high interest rates (30%) and only being able to afford the absolute minimum monthly payment (26%).
“Our findings reveal the nation’s consumer debt epidemic is impacting millions of older Americans’ financial futures and threatening to put the retirement they’ve worked toward for decades out of reach,” said Natalia Brown, chief compliance and consumer affairs officer at National Debt Relief. “The unpredictable financial challenges we experience with age can easily escalate into overwhelming debt amid the costs of modern living, making it essential for older Americans to know that reputable debt relief solutions are available.”
When it comes to savings, the average respondent in debt has managed to bank $29,187 and 61% reported they “definitely” do not have enough to live comfortably for the remainder of their lives.
Nearly half of those in debt (49%) said they have $20,000 or less in savings, and over one in five (22%) concerningly reported having zero savings at all.
According to respondents, the two factors having the greatest impact on their ability to save are inflation (72%) and paying off debt (36%). Likewise, respondents most frequently chose the cost of living (69%) and the economy (45%) as their greatest financial concerns for the future.
This may explain why 48% of all currently employed respondents do not feel set up for success for retirement.
Combined with these other challenges, debt has become a major hindrance to the financial health of older Americans, with two in three respondents in debt (68%) saying it has very much or somewhat impacted their ability to retire and 62% stating they never envisioned being in debt at this stage in life.
This has put many retirement plans on hold, with 67% of non-retired respondents in debt saying they will need to continue working into the years they thought they’d be retired to support themselves and their families.
“Debt in retirement isn’t just a personal challenge; it’s a social issue with wide-reaching implications that extend to families, communities, and public systems already under strain,” said Dr. Kaylee Ranck, director of college research for the American College of Financial Services.
“While this research shows many older adults are carrying significant debt into later life, it’s never too late for people to make meaningful progress towards their retirement goals and take control of their financial future through trustworthy professional guidance and educational resources.”
Ahead of Social Security Month in April, the study aimed to understand how older Americans feel about it and found that 82% of respondents reported being concerned about the future of Social Security.
For those in debt, 76% said they don’t think Social Security payments will be enough to support them through their retirement.
The survey also asked respondents: If you could go back in time and give your younger self one piece of financial advice, what would it be?
The answers were found to overwhelmingly be an iteration of “save more, spend less,” with one person telling their younger self: “Don’t get into credit card debt.”
Survey methodology:
Talker Research surveyed 1,000 Gen X Americans (min age of 55) and 1,000 baby boomer Americans; the survey was commissioned by National Debt Relief and administered and conducted online by Talker Research between Feb. 19 to Feb. 26, 2025.
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