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NEW YORK — Millions of older Americans are preparing for retirement, but a heavy financial weight is preventing many from moving forward. Recent research shows that more than half of Americans in their later years feel that debt has significantly limited their life choices and opportunities.

A February 2025 survey of 2,000 adults over 55 examined how debt affects Americans approaching or already in retirement. The findings paint a troubling picture: 72% of older adults are carrying debt, and over half report feeling so overwhelmed they doubt they’ll ever escape it.

Credit cards top the list of financial burdens, with 45% of older Americans carrying card debt. The average balance sits at nearly $9,000, requiring monthly payments of $418. Housing costs follow closely behind, with 30% still making mortgage payments. These homeowners typically owe $72,000 and pay about $797 monthly toward their housing debt.

Health problems bring additional financial strain. About 17% of those surveyed are working to pay off medical debt, with balances averaging $9,144 and monthly payments of $222. Vehicle costs add further pressure, as 22% make car payments averaging $446 monthly on auto loans around $17,000.

The research, conducted by Talker Research and commissioned by National Debt Relief, found that insufficient income was the biggest barrier to debt freedom. Nearly half (46%) of respondents said they simply don’t earn enough to effectively tackle their debts. High interest rates (30%) and only being able to make minimum payments (26%) were other major obstacles.

“Our findings reveal the nation’s consumer debt epidemic is impacting millions of older Americans’ financial futures and threatening to put the retirement they’ve worked toward for decades out of reach,” said Natalia Brown, chief compliance and consumer affairs officer at National Debt Relief. “The unpredictable financial challenges we experience with age can easily escalate into overwhelming debt amid the costs of modern living, making it essential for older Americans to know that reputable debt relief solutions are available.”

Inadequate Savings Compound Problems

The savings picture looks equally concerning. While the average debt-carrying respondent has managed to save $29,187, a strong majority (61%) believe this amount falls far short of what they’ll need for retirement.

Almost half (49%) of indebted older Americans have saved $20,000 or less. Even more worrying, more than one in five (22%) have no savings whatsoever.

When asked what hurts their ability to save, respondents pointed to inflation (72%) and debt payments (36%). Their biggest financial worries moving forward centered on rising costs (69%) and general economic conditions (45%).

These findings help explain why 48% of employed respondents feel unprepared for retirement. For many, debt has become a major roadblock to retirement security, with 68% of indebted respondents saying it has affected their ability to retire.

‘It’s Never Too Late’

The survey revealed a painful truth for many: 62% of respondents never thought they’d be dealing with debt at this stage of life. This financial reality has forced 67% of non-retired respondents with debt to keep working past their planned retirement age to support themselves and their families.

“Debt in retirement isn’t just a personal challenge, it’s a social issue with wide-reaching implications that extend to families, communities, and public systems already under strain,” said Dr. Kaylee Ranck, director of college research for the American College of Financial Services. “While this research shows many older adults are carrying significant debt into later life, it’s never too late for people to make meaningful progress towards their retirement goals and take control of their financial future through trustworthy professional guidance and educational resources.”

Retirement Safety Net Concerns

With April marking Social Security Month, the survey also explored attitudes toward this critical program. A large majority (82%) expressed worry about Social Security’s future.

For those with debt, the outlook appears particularly dim. Three-quarters (76%) don’t believe Social Security payments will be enough to support them through retirement.

Asked what financial advice they would offer their younger selves, most responses centered on saving more and spending less. One respondent was direct: “Don’t get into credit card debt.”

The survey points to a growing crisis that extends beyond individual households. As millions struggle with debt in what should be their retirement years, the effects touch families, communities, and the broader economy. The research suggests we need stronger solutions addressing both immediate debt problems and long-term retirement security.