Inflation and retirement income are already among the top concerns for Baby Boomers and members of Generation X. Now, new research adds debt to that list of worries.
Debt settlement organization National Debt Relief released a report with responses from 1,000 Boomers and 1,000 Gen X members, finding that debt is not only common for these groups, but also significantly disruptive to their financial and emotional health.
According to the findings, 72% of survey respondents have accumulated at least some debt, with over half adding that debt has “held them back” in life. Another half reported feeling overwhelmed by debt and fearful over not paying it off.
While credit card debt was the most common form of debt among respondents, with 45% carrying some sort of balance, medical debt proved to also be a weighty hurdle for respondents. Nearly one in five (17%) reported having an average of $9,144 in outstanding medical bills.
“Our findings reveal a troubling reality: our nation’s growing consumer debt epidemic has left millions of older Americans feeling stressed about their debt, which has considerable impacts on their ability to build a comfortable financial future and their ability to retire. For many, what they’ve worked towards for decades, feels out of reach,” said Natalia Brown, chief compliance and consumer affairs officer of National Debt Relief.
While the average age of respondents in National Debt Relief’s survey is 61, respondents said it would take them an average of 12 more years to reach their savings goals. This is despite the fact that the Social Security Administration’s full retirement age (FRA) is 67 for most of these groups.
An additional 68% believe the debt has had a somewhat or significant impact on their ability to retire, and 67% of non-retired respondents believe they will need to keep working past retirement to support themselves as their families.
The future of Social Security’s solvency has also been a cause of concern for other members in these generations. Eighty-two percent of respondents admitted their fears regarding the future of the program, and among those in debt, 76% are skeptical they would support their retirement through Social Security benefits alone.
The data follows another report by Global Atlantic Financial Group, which found that 35% of respondents to its study expect needing to rely “a lot” on Social Security to cover costs in retirement.
Experts say such hurdles shouldn’t be viewed as a personal endeavor, especially as financial instability tends to impact households, communities, and even future generations.
“One growing concern is the number of older adults carrying significant debt into retirement,” said Dr. Kaylee Ranck, director of College Research at the American College of Financial Services. “That’s not just a personal challenge as it has ripple effects across families, communities and public systems. Empowering people with the right tools and guidance early on isn’t just smart planning, it’s essential to long-term financial well-being.”
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Inflation, Retirement Income Among Top Concerns for Gen X and Baby Boomers
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.
