How Much Debt Do Near-Retirees Have?

The average near-retiree household in the United States has over $100,000 in debt. This includes both housing debt and consumer debt.

Debt Among Near-Retirees

  • 80.2% of near-retiree households held debt in 2010. This percentage has remained relatively stable over the past two decades.
  • The average debt among near-retiree households in 2010 was $120,871. Among near-retiree debt holders, the average debt was $150,633.
  • The majority of this debt was housing debt. In 2010, the average housing debt among near-retiree households was $102,553. The average consumer debt was $18,317.
  • Housing debt was highest among higher-income households. The average housing debt for near-retiree households in the top third of the income distribution in 2010 was nearly $200,000. For the middle and bottom income thirds, the average values were $79,393 and $31,233, respectively.
  • Consumer debt figures were more consistent across the income distribution. Among near-retirees in the bottom third of the income distribution, the average consumer debt in 2010 was $14,726. Among households in the middle and highest thirds, the average values were $15,836 and $24,437, respectively. However, lower-income households had much higher consumer debt-to-income ratios.

Implications of Debt for Near-Retirees

  • Debt can reduce the amount of money available for retirement savings. The costs of servicing debt can eat into a near-retiree’s income, leaving less money to save for retirement.
  • Debt can reduce savings and other assets in retirement. When debt is carried into retirement, it can reduce savings and other assets, making it more difficult to cover unexpected expenses or health care costs.
  • Debt can increase vulnerability to financial shocks. Near-retirees with debt may be more vulnerable to financial shocks, such as job loss or illness, as they have less financial cushion to fall back on.

Near-retirees in the United States are carrying a significant amount of debt, which can have a negative impact on their retirement security. It is important for near-retirees to develop a plan to manage their debt and save for retirement.

Average and median net worth by age

Heres a look at the average and median net worth by age in the U.S., according to the Fed. As you can see, net worth tends to peak for most American during the decade after age 65.

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Every three years, the Federal Reserve Board issues the Survey of Consumer Finances to share information about family net worth and income in the U.S.

Using data gathered in 2019, the most recent report, which was published in September 2020, displays the median U S. household net worth is $121,700, but for those between the ages of 65 and 74, it is more than twice as much.

The median net worth of Americans in their late 60s and early 70s is $266,400, according to Fed data. The median net worth for this age group is significantly more representative at $1,217,700, but averages tend to skew higher due to high net-worth households.

Even though $266,400 might seem like a lot of money at first, most people begin depleting their net worth in their 60s in order to pay for retirement-related living expenses. Planning for your post-employment years requires an understanding of net worth and how it relates to a fixed income lifestyle.

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TRUTH! Average Retiree Income: How Do You Compare?


How much debt does the average 60 year old have?

Average total debt (2023)
Average total debt (2022)
Millenial (27-42)
Gen X (43-57)
Baby Boomer (58-77)
Silent Generation (78+)

How much debt do most retirees have?

Among retirees, 71% have debt not related to their mortgage with an average balance of $19,888, according to the 2023 State of Retirement Finances report from Clever Real Estate. Some of the main reasons retirees carry debt include: Changing market conditions. Depletion of savings.

What percentage of retirees have $4 million dollars?

According to a 2020 working paper from the Center for Retirement Research at Boston College, the top 1% of retirees-which a retiree with $4 million in assets would fall into-can expect to pay about 22.7% in state and federal taxes.

How much money do people have when they retire on average?

The average retirement savings for all families is $333,940 according to the 2022 Survey of Consumer Finances. Taken on their own, those numbers aren’t incredibly helpful. There are a variety of decent retirement savings benchmarks out there, but how much money other people have isn’t one of them.

How much debt does the average retiree have?

The Average American of Retirement Age Has $70,000 in Debt, Data Shows. Here’s How to Whittle Yours Down Later in Life. Many retirees find that money is tighter than expected. Having debt payments to contend with could make your financial situation even more stressful.

How much debt do you have in your retirement savings?

The proverbial red line here for retirement savings-endangering debt is $50,000 or more of either mortgage or non-mortgage debt. Fortunately, there are approaches that can help you manage or eliminate your debt. In the course of a working lifetime, it’s amazing how much debt you can rack up.

What percentage of retirees are debt free?

Three in 10 devote more than 40% of their monthly income to debt and a quarter have a mortgage with more than 20 years remaining on it. More than half say they intend to enter retirement debt free, but only one-quarter of retired Boomers actually are debt free. The Federal Reserve data suggests that these are the average debt levels by age:

Are You nearing retirement with debt?

A recent Nationwide study finds that Americans of retirement age have an average of $70,000 in debt. And that’s not the most comforting piece of data. So if you’re nearing retirement with debt, take these key steps to improve your situation.

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