More Retirees Are Carrying Debt Than You Might Think—And It’s Not Just Mortgages

Core Insights - Nearly 60% of retirees carry some form of debt, with a median balance of $32,050, which has nearly tripled since 1989 [2][7] - Credit cards are the most common type of debt among retirees, with 32% holding balances, followed by mortgages or home equity loans at 24.3% [5][7] - Rising interest rates and fixed incomes make it challenging for retirees to manage debt, emphasizing the need for strategies to lower payments or interest rates [3][4] Debt Composition - The types of debt held by retirees include credit cards, mortgages, vehicle loans, education loans, home equity lines of credit, and other real estate debt [5][6] - Median balances for different debt types are as follows: - Credit card balances: $2,500 - Mortgages or home equity loans: $100,000 - Vehicle loans: $13,000 - Education loans: $20,000 - Home equity lines of credit: $27,000 - Other real estate debt: $158,000 [11] Financial Implications - The presence of debt in retirement can limit financial flexibility, making it harder to cope with rising costs or unexpected expenses [4][10] - Retirees may need to consider cutting expenses or seeking part-time work to manage their debt effectively [7][10]