Very few retirees are completely debt-free, with studies showing as few as 23% to 37% of retirees having no debt, while others indicate over 97% of retirement-aged Americans carry some form of non-mortgage debt, like credit cards or auto loans, highlighting a growing trend of debt in later life. The majority of older adults, particularly Boomers, still have significant debt burdens, often including mortgages, auto loans, and escalating credit card balances, making a debt-free retirement a difficult goal for many.
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.
The study showed that 97.1% of Americans aged 66 to 71 have debts that are not mortgages. The most recent Federal Reserve Study of Consumer Finances was in 2022, and that showed that the average debt for older adults is between $95,000 and $172,000.
For a 70-year-old, average retirement savings vary significantly by source, but generally fall between $250,000 and over $600,000 (mean/average), while the median (half have less) is much lower, around $100,000 to $200,000, highlighting a wide gap due to high earners skewing averages. Key figures show the mean for ages 65-74 around $609,000, but the median for that group is closer to $200,000.
The average retiree's monthly expenses in the U.S. hover around $4,600 to $5,400, with younger retirees (65-74) spending more, often over $5,000 monthly, while those 75+ spend closer to $4,400 as transportation and entertainment costs decrease, though healthcare costs can rise, with housing, transportation, healthcare, and food being the biggest categories.
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.
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.
In particular, only 37% of retirees do not have any debt, according to an Employee Benefit Research Institute (EBRI) study. 1 While that is not always a bad thing—some debt, like a low-interest mortgage, can be financially advantageous—that still leaves many people struggling in retirement.
The debt capital of the UK
Compared to the rest of the country, the average person in Britain is £1,228.78 in debt – which across all adults in the UK equates to over £65 billion. People aged between 35 and 44 also revealed that they have the highest level of debt (£1,912) compared to all other age groups.
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.
For many Americans, retirement isn't financially carefree and easy. In fact, according to Schroders' 2025 US Retirement Survey, 19% of retirees are “struggling” or “living the nightmare” while just 5% said they were “living the dream”.
You don't have to choose between paying off debt and saving for retirement. Doing both is possible with the right strategy. It's best to prioritize eliminating high-interest debt, then compare the interest rate on low-interest debt to the potential return on an investment.
Key Facts on Retirement Savings
A: If you run out of money in retirement, you may have to rely on Social Security, pensions, or public assistance. You might sell assets or downsize your home. Many turn to part-time work or family support. The impact can be stressful without advance planning.
One in five Americans over the age of 50 have no retirement savings, according to a survey by the AARP. And even if you have something tucked away, it may not be enough — though that is something you can change even late in the game.
The top ten financial mistakes most people make after retirement are:
Housing. Housing is likely to be your biggest cost in retirement. Many retirees think when they pay off their home, the house payment goes away but property taxes, insurance, and escrow fees never do.
For people aged 60, Fidelity's retirement savings guidelines recommend an amount in savings worth six times your salary in order that you have enough to maintain your standard of living in retirement. So, someone earning £60,000 would need £360,000 in savings - which can mean money both inside and outside of pensions.
Numbers from the Federal Reserve's 2022 Survey of Consumer Finances suggest they are. The average remaining retirement savings for the 75-and-up crowd at that time was $462,410.