Four out of five households approaching retirement in 2010 held debt
In 2010, 80.2percent of near-retirees held household debt. A similar share of near-retiree households have held debt throughout the past two decades. 1,2
The average debt among near-retirees was over $100,000
Mean household debt among all near-retiree households in 2010 was $120,871. Among near-retiree debt holders, the mean debt was $150,633.
The majority of this debt was housing debt
In 2010, mean housing debt among near-retiree households was $102,553. The mean for consumer debt was $18,317.
Housing debt was highest among higher income households
The mean housing debt for near-retiree households in the top third of the income distribution in 2010 was nearly $200,000. For the middle and bottom income thirds, the mean values were $79,393 and $31,233, respectively.
Consumer debt figures were more consistent across the income distribution
Among near-retirees in the bottom third of the income distribution, mean consumer debt in 2010 was $14,726. Among households in the middle and highest thirds, the mean values were $15,836 and $24,437, respectively. However, lower income households had much higher consumer debt-to-income ratios.
Average Consumer Debt and Housing Debt for Near-Retiree Households, 2010 (in dollars)
SOURCE: Author's calculations based on 2010 SCF.
Show as table
Table equivalent for chart: Average Consumer Debt and Housing Debt for Near-Retiree Households, 2010 (indollars) | By income thirds | Housing debt | Consumer debt |
| Overall | 102,553 | 18,317 |
| Lowest income third | 31,233 | 14,726 |
| Middle income third | 79,393 | 15,836 |
| Highest income third | 196,749 | 24,437 |
FAQs
Unfortunately, it's a strain many people risk dealing with. A recent Nationwide study finds that Americans of retirement age have an average of $70,000 in debt. And that's not the most comforting piece of data. So if you're nearing retirement with debt, take these key steps to improve your situation.
What percentage of retirees are debt free? ›
Average Retirement Debt: The Numbers
Three in 10 devote more than 40% of their monthly income to debt and a quarter have a mortgage with more than 20 years remaining on it. More than half say they intend to enter retirement debt free, but only one-quarter of retired Boomers actually are debt free.
What percentage of retirees have their home paid off? ›
Today, the oldest baby boomers (born between 1946 and 1951) are less likely to have paid off their homes than previous generations. Another study revealed that 44% of 60- to 70-year-old homeowners are carrying mortgage into retirement, and 32% expect it will take them more than eight years to pay it off.
What is the debt ratio for retirees? ›
Divide your monthly debt payments by your monthly gross income (before taxes) that you expect to receive in retirement. What is this ratio? If your debt-to-income ratio is higher than 43%, this can be a sign that you are overextended.
How much debt does the average 70 year old have? ›
Average total debt by age and generation
| Generation | Ages | Credit Karma members' average total debt |
|---|
| Millennial (born 1981–1996) | 27–42 | $48,611 |
| Gen X (born 1965–1980) | 43–58 | $61,036 |
| Baby boomer (born 1946–1964) | 59–77 | $52,401 |
| Silent (born 1928–1945) | 78–95 | $41,077 |
1 more rowApr 29, 2024
Average net worth by age
| Age by decade | Average net worth | Median net worth |
|---|
| 60s | $1,634,724 | $454,489 |
| 70s | $1,588,886 | $378,018 |
| 80s | $1,463,756 | $345,100 |
| 90s | $1,318,023 | $315,085 |
4 more rowsAccording to the Federal Reserve's latest Survey of Consumer Finances, only about 10% of American retirees have managed to save $1 million or more. This leaves a significant 90% who fall short of this milestone. Don't Miss: The average American couple has saved this much money for retirement — How do you compare?
How many people retire with no savings? ›
20% of adults ages 50+ have no retirement savings, 61% worry they won't have enough at retirement, as per new AARP survey. Plus six tips to start saving now.
Do most retirees run out of money? ›
The average retiree doesn't have anywhere close to $1 million saved. Most retirees have just $142,500 in savings, according to Clever's study. Almost half (46%) of retirees are unprepared for the possibility of running out of retirement savings.
Can an 80 year old get a 30 year mortgage? ›
You Can Get a 30-year Mortgage at Any Age
You could be 99 years old and get a 30-year mortgage as long as you qualify. The lender may not deny a loan because they don't think you'll live long enough to pay it off.
Average Monthly Retirement Income
Many retirees fall far short of that amount, but their savings may be supplemented with other forms of income. According to data from the BLS, average 2022 incomes after taxes were as follows for older households: 65-74 years: $63,187 per year or $5,266 per month.
How many 65 year olds still have a mortgage? ›
Mortgage debt remains uncommon among homeowners age 65-plus relative to their younger counterparts; in fact, the fraction of homeowners age 65-plus who had a mortgage in 2022 (34 percent) was less than half that of homeowners under age 65 (70 percent) 3.
What is the average debt of a retiree? ›
Among retirees, 71% have debt not related to their mortgage with an average balance of $19,888, according to the 2023 State of Retirement Finances report from Clever Real Estate. Some of the main reasons retirees carry debt include: Changing market conditions. Depletion of savings.
What percentage of 65 year olds are debt free? ›
Nearly 65% of Americans 65 to 74 held debt in 2022, compared to about half of seniors 75 and older who held debt. In comparison, less than half of the population aged 65 to 74 held debt in 1989. That same year, only 21% of older adults 75 and up were in debt.
What is the 70% rule for retirement? ›
The 70% rule for retirement savings says your estimated retirement spending will be 70% of your pre-retirement, post-tax income. Multiplying your post-tax income by 70% can give you an idea of how much you may spend once you retire.
What is the average 401k balance for a 65 year old? ›
Average and median 401(k) balances by age
| Age range | Average balance | Median balance |
|---|
| 35-44 | $76,354 | $28,318 |
| 45-54 | $142,069 | $48,301 |
| 55-64 | $207,874 | $71,168 |
| 65+ | $232,710 | $70,620 |
2 more rowsMar 13, 2024
According to the Bureau of Labor Statistics (BLS), the average income of someone 65 and older in 2021 was $55,335, and the average expenses were $52,141, or $4,345 per month.
How much money does the average retiree have in the bank? ›
The Federal Reserve's most recent data reveals that the average American has $65,000 in retirement savings. By their retirement age, the average is estimated to be $255,200.
