Retirement debt is becoming one of the biggest threats to financial security in America. A new article on GoBankingRates, featuring exclusive survey data from National Debt Relief, explains why paying off debt before leaving the workforce is more urgent than ever.
The numbers are eye-opening. According to the research, 97% of adults aged 66 to 71 carry non-mortgage debt, with median balances over $11,000 in major cities. The issue is also about a lack of savings. Two-thirds of non-retired adults say they’re not even close to having enough saved for retirement, and many estimate they’ll need to work another 12 years to catch up.
This is where retirement debt becomes especially dangerous. The article outlines five ways it can ruin even the best-laid plans. First, it delays retirement. Many people stay in the workforce longer than they want to, simply because they can’t afford to stop working. Second, debt weakens your financial safety net. Nearly half of those surveyed had saved less than $20,000—and 22% had saved nothing at all.
Third, retirement debt forces painful choices during market downturns. Even if your investments take a hit, your debt payments don’t pause. That can lead to early withdrawals and steep tax penalties. The fourth problem is psychological: debt makes people feel insecure about spending, even when they can afford basic comforts. And finally, debt kills flexibility. Medical emergencies, home repairs, or family needs become much harder to handle when monthly income is already tied up.
Beyond the numbers, the emotional toll of retirement debt is real. Many older adults feel ashamed of their balances. Some hide their financial struggles from family members and quietly sacrifice their own well-being to make payments.
“Our findings reveal a troubling reality,” said Natalia Brown, Chief Compliance and Consumer Affairs Officer at National Debt Relief. “Millions of older Americans feel stressed about their debt, which impacts their ability to build a secure future.”
The GoBankingRates article offers both a wake-up call and a path forward. With survey data from National Debt Relief, it shows how debt affects retirees and near-retirees alike. It also helps readers understand the importance of acting now—whether that means reworking your budget, seeking professional help, or making a plan to become debt-free.
