Households headed by individuals aged 65–74 carry an average debt of approximately $45,000 to $134,950, with over 60% of these households holding some form of debt, such as mortgages, auto loans, or credit cards. For those aged 70 and older, the total average debt per person is roughly $43,142.
For households headed by those aged 65 to 74, average debt has more than quadrupled over the last three decades, climbing from about $10,000 in 1992 to around $45,000 in 2022.
The EBRI analysis found retirees were more likely to have credit card debt than other kinds. The share of older Americans with debt has risen over the decades. Among people 75 and older, 53% of households reported debt in the 2022 Federal Reserve's Survey of Consumer Finances, up from 21% in 1989.
How Much Does the Average 70-Year-Old Have in Savings? According to data from the Federal Reserve's most recent Survey of Consumer Finances, the average 65 to 74-year-old has a little over $426,000 saved. That's money that's specifically set aside in retirement accounts, including 401(k) plans and IRAs.
In 1998, 26% of Americans ages 65-74 held home-secured debt such as mortgages, yet by 2022, that grew to 32.2%. 1 This trend is particularly pronounced among those ages 75 and up, with 27.6% holding home-secured debt in 2022, up from 11.6% in 1998.
Federal Reserve data shows that about 23% of Americans have no debt.
Mortgages make up about 70% of household balances. Conventional wisdom has long recommended that homeowners pay off their mortgage before retiring. Yet over the past three decades, more older adults are carrying their mortgage into retirement, while the amount owed has increased dramatically.
Average credit score for people in their 60s and beyond
For borrowers 60 and over, the average credit score is 749. As a person approaches retirement they have a long and detailed credit history and, again, many types of credit.
About 40 percent of all U.S. households where the head of the household is between 35 and 64 are expected to run short of money in retirement, according to a 2019 report by the Employee Benefit Research Institute.
The "240,000 rule" (or $1,000-a-month rule) is a retirement guideline suggesting you need $240,000 saved for every $1,000 of monthly income you want in retirement, based on a 5% annual withdrawal rate ($240,000 x 0.05 = $12,000/year or $1,000/month). It's a simple way to estimate savings needs, but it doesn't account for inflation, taxes, market volatility, or other income sources like Social Security, making it a starting point, not a complete plan.
Moynes refers to as the 3 D's: depression, divorce, and cognitive decline. This period can be incredibly challenging as retirees struggle to find a new sense of purpose and direction without the familiar structure of their careers.
On the other hand, buying a home after 60 can hurt you financially. For example, if you plan on moving in five years or less, the expenses of homeownership will cost more than the financial benefits. Plus, you'll have to sell or rent out the home when you want to move.
Even though more than half of Boomers plan to retire debt-free, the numbers tell a different story. A survey by the Employee Benefit Research Institute (EBRI) reveals that only 23% of retirees aged 65 to 74 achieve that goal.
1) “I wish I'd had the courage to live a life true to myself, not the life others expected of me.” 2) “I wish I hadn't worked so hard.” 3) “I wish I'd had the courage to express my feelings.” 4) “I wish I had stayed in touch with my friends.” 5) “I wish I had let myself be happier” (p.
Key Points. The 4% rule is a popular strategy for managing retirement savings. Suze Orman thinks 4% may be too aggressive a withdrawal rate today. She recommends a more conservative approach coupled with other means of attaining financial security in retirement.