4 in 10 Americans aren’t confident about their savings — they may be right if these 3 debts aren’t paid off

Core Insights - Retirement confidence among American adults is at a low, with 40% expressing doubts about having sufficient income and assets for retirement [1] - Only about 25% of adults show high confidence in their retirement finances, and even among those in their 60s and 70s, fewer than half feel highly confident [2] Debt Impact on Retirement Preparedness - Excessive debt, particularly high-interest obligations, is a significant factor affecting retirement preparedness, diverting funds from lifestyle support to creditors [3] - Three types of debt are particularly concerning: student loans, auto loans, and credit card or personal loans [3] Student Loans - The average borrower takes 20 years to pay off student loans, which can extend into prime earning years, delaying retirement savings [4] - Federal undergraduate student loan interest rates are at 6.39% for 2025-2026, the highest in a decade, with graduate rates reaching up to 8.94% [5] - Alarmingly, 21% of borrowers see their balances increase during the first five years of repayment, indicating a prolonged financial burden that limits retirement contributions [6] Auto Loans - Vehicle financing has become increasingly expensive, with average new car loan interest rates at 6.73% and monthly payments averaging $745 [7] - Used car buyers face even higher costs, with average rates at 11.87% and monthly payments of $521 [7]