How to pay off debt in retirement

Should you be concerned about your debts in your retirement? The short answer is yes.

If possible, it’s best to avoid carrying debt in retirement. Studies have linked credit card debt with increased stress and even physical pain. Meanwhile, older adults without such burdens find it far easier to manage their finances and make ends meet.

According to the Federal Reserve Bank of New York, from 1999 to 2019, debt among Americans over the age of 70 climbed a whopping 543%. A 2021 report by Experian found that the average credit card debt held by baby boomers was $6,230, while the average credit card debt held by the Silent Generation (now ages 76 and up) was $3,821.

Households of people ages 70-plus are more likely than before to have credit card debt, mortgages and even student loans.

 

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