Core Insights - Carrying debt into retirement can significantly strain finances, particularly affecting fixed income and essential spending [2][3][4] Debt Impact on Retirement - Millennials and Gen Xers have the highest non-mortgage debt, averaging $11,000 and $10,000 respectively [2] - Non-mortgage debt creates cash flow pressure for retirees, as income becomes fixed and predictable [3] - High-interest debt, such as credit cards, can erode fixed income, limiting spending on essentials like healthcare [4][6] Debt Management Strategies - Prioritizing high-interest debt is crucial, as the average APR for credit cards was 21.39% in August 2025, compared to a 15-year average annual return of 12.18% for the S&P 500 [6] - A comprehensive understanding of finances is essential for developing a debt payoff strategy before retirement [7] - Pre-retirees are advised to create a realistic retirement budget, list all debts, and implement a payoff plan, focusing on high-interest debts first [8]