Credit Card and Medical Debt Among Leading Causes for Retirement Delay

credit card debt

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A consumer survey by ScoreSense asked workers about the top reasons they’re delaying retirement—finding that credit card debt is the leading cause.   

According to the survey, only 30% of respondents think they will be able to retire on time, and 18% think they will retire after age 67. Credit card debt was the leading type of debt that respondents say would delay their retirement (30%), followed closely by medical debt (29%). This was particularly true for those ages 40 to 49, followed by individuals between the ages of 70 to 79.

The idea of a near recession, or at the very least, heightened inflation, has also stirred some to delay retirement. If a recession were to occur in the next two years, 40% of respondents said it would delay their retirement plans, with Generation X workers (ages 40 to 59) particularly noting a postponement. Additionally, 23% of respondents said they have lowered their retirement plan contributions in the last 12 months to cover higher household expenses due to inflation.

Alternatively, 30% of respondents have taken a second job or side gig to increase retirement savings. Downsizing a home (20%), moving to a different city or state (19%), or selling off assets (19%) were also cited, found ScoreSense. Those ages 60 to 79 were more likely to downsize their homes compared to those between 40 to 59.

“In the midst of a tough inflationary economy, it’s not surprising that many Americans are not where they want to be on their retirement goals,” said Carlos Medina, senior vice president at One Technologies, LLC, which offers ScoreSense.

Additional findings, as reported by ScoreSense, include:

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