Data and Research April 21, 2025

Debt Burdens Can Delay Retirements

Research finds that Generation X, Baby Boomer Americans are stressed about their debt, which impacts their ability to retire.

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Outstanding debt could be causing members of the Generation X and the Baby Boomer population cohorts to put retirement plans on hold indefinitely, according to multiple recent surveys.

In February, National Debt Relief surveyed 1,000 Generation X and Baby Boomer Americans to understand the toll debt is taking on older Americans and the stark impact it is having on their ability to retire.

“Our findings reveal a troubling reality: 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,” said Natalia Brown, National Debt Relief’s chief compliance and consumer affairs officer, in a statement. “For many, what they’ve worked toward for decades feels out of reach.”

Among the notable facts in National Debt Relief’s report:
  • 72% of respondents have accumulated at least some debt. More than 50% said their debt has “held them back” in life;
  • More than 50% reported feeling overwhelmed by debt and the fear they will never pay it off;
  • 17% reported having an average of $9,144 in outstanding medical bills; and
  • 45% of respondents said they carry a credit card balance. On average, they reported owing nearly $9,000 and paying $418 toward it each month.

Credit Card Survey

According to Debt.com’s annual survey of 1,000 Americans, for the second consecutive year, an average of one in every three people needs credit cards to make ends meet—and many are maxed out.

U.S. credit card balances have ballooned since the worldwide inflation surge began in March 2021. According to the Federal Reserve, Americans owe a record-high $1.21 trillion on credit cards. Debt.com’s latest research showed how that affects their credit card usage: 32% have maxed out their credit cards; 37% need their credit cards to make ends meet; 44% carried a larger monthly balance.

Those who have already maxed out their cards are most vulnerable. An average of eight out of 10 said they “would need to rely on credit card(s) if faced with a financial emergency.” Slightly more than 23% reported already owing more than $20,000.

Retirement: Elusive and Delayed

The National Debt Relief survey revealed that with so many still in debt, retirement is not within reach for many of them.
  • The average age of survey respondents was 61, yet they estimated needing an average of 12 more years to reach their savings goals—well beyond the Social Security Administration’s full retirement age of 67;
  • 68% of those in debt said it has somewhat or significantly impacted their ability to retire;
  • 67% of non-retired respondents said they believe they will need to keep working beyond their planned retirement age to support themselves and their families.
“Planning for retirement often starts later than it should, but earlier action can improve financial outcomes,” said Kaylee Ranck, the American College of Financial Services’ director of college research, in a statement. “Decisions made decades earlier can lay the groundwork for financial stability or create challenges that escalate over time. One growing concern is the number of older adults carrying significant debt into retirement. That’s not just a personal challenge, as it has ripple effects across families, communities and public systems. Empowering people with the right tools and guidance early on isn’t just smart; it’s essential to long-term financial well-being.”

In-Person Professional Advice Usage Rises, Digital Advice Plateaus

Two primary sources dominated report results as Americans’ “go-to” for financial support, according to a recent report from Hearts & Wallets. The top source is the individual or their spouse/partner, accounting for 47% of households. The second most common source is financial professionals, serving 25% of households. The use of financial professionals as a primary resource has risen by only four percentage points in the last 13 years, up from 21% in 2012.

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