For many baby boomers, the dream of a relaxing retirement is feeling more out of reach. Instead of slowing down, many are working longer and living paycheck to paycheck as debt, high costs, and limited savings make it hard to get ahead. A new report from GoBankingRates highlights just how serious the problem has become—and what’s keeping older Americans from retiring when they planned.
A 2025 study by LendEDU found that about 42% of baby boomers are living paycheck to paycheck. On top of that, a recent National Debt Relief survey revealed that 72% of older adults carry some kind of debt. Many said they expect to work an extra 12 years, on average, before they can retire comfortably. With most respondents already around age 61, that’s a worrying sign that financial pressure isn’t letting up.
One of the biggest challenges is a lack of savings. Nearly half of those surveyed said they have less than $20,000 saved, and more than one in five said they have no savings at all. Without enough short-term savings to cover emergencies, many people dip into their retirement accounts just to pay for daily expenses. That can make it even harder to reach long-term goals.
Debt also plays a major role in delaying retirement. Among older adults with debt, the average retirement savings totaled just under $30,000—a small cushion for people nearing retirement age. Credit card debt was the most common type reported, with balances averaging around $9,000 and monthly payments of about $400. The survey also found that many older adults are still paying off medical bills, with nearly one in five carrying medical debt averaging more than $9,000.
According to National Debt Relief’s research, many older adults say a tough economy makes it harder to save or pay down debt. Nearly three-quarters of respondents blamed economic conditions for their financial struggles, while others said high costs of living have made it difficult to stay ahead. These pressures can make it feel like no matter how much they earn, their money doesn’t stretch as far as it used to.
Still, the article emphasizes that there’s hope. With careful budgeting, debt management, and realistic planning, it’s possible for older Americans to make progress toward financial stability—even if retirement looks different than they once imagined. National Debt Relief continues to be a trusted resource for people looking to manage debt and create a path toward financial wellness.
You can read the full article on GoBankingRates to learn more about what’s driving these financial challenges and how older adults can take steps to overcome them.
