New research from National Debt Relief reveals how debt is impacting retirement planning for millions of older Americans. The study, featured in 401k Specialist Magazine, focuses on the financial realities facing Baby Boomers and Generation X—and the growing number of people carrying debt into their retirement years.
In a survey of 2,000 adults aged 55 and older, 72% reported carrying debt, and many said it has disrupted their long-term financial goals. “Our findings reveal a troubling reality,” says Natalia Brown, chief compliance and consumer affairs officer at National Debt Relief. “Our nation’s growing consumer debt epidemic has left millions of older Americans feeling stressed about their debt, which has considerable impacts on their ability to build a comfortable financial future and their ability to retire.”
Debt, Delays, and Financial Pressure
The study uncovered several key stress points for older adults managing debt. Credit card balances were the most common issue, affecting 45% of respondents. Medical debt was also widespread, with nearly one in five participants owing an average of $9,144 in unpaid medical bills.
These financial burdens have long-term consequences. On average, survey participants said they would need an additional 12 years to reach their retirement savings goals—well beyond the full retirement age of 67. For many, that means postponing retirement entirely. Among those not yet retired, 67% expect to keep working past retirement age just to stay financially afloat.
Looking Ahead: Concerns About Financial Security
The financial strain extends beyond debt balances. The study found that 82% of respondents are concerned about the future of Social Security. Among those with debt, 76% said they don’t believe Social Security alone will be enough to support them through retirement.
As Dr. Kaylee Ranck of the American College of Financial Services points out, the effects of retirement debt go beyond the individual. “One growing concern is the number of older adults carrying significant debt into retirement. That’s not just a personal challenge—it has ripple effects across families, communities, and public systems.”
These findings highlight the growing need to address debt earlier and more effectively as people age. To read more about this research and what it means for retirement planning, check out the full article in 401k Specialist Magazine.
