Senior Debt in America

How Many Seniors Are in Debt?

Research by the AARP (2023) found that 75% of adults aged 50 and older hold some form of debt, and 84% reported that debt is sometimes necessary to make ends meet. Rising living costs may contribute to this trend. According to the Employee Benefit Research Institute (2024), 31% of retirees say their spending exceeds what they can afford—an increase from 27% in 2022 and 17% in 2020.

How Much Debt Do Seniors Carry?

The Federal Reserve’s Survey of Consumer Finances (2022) reported that older adults carry between $95,000 and $172,000 in debt, on average. These amounts reflect mortgages, credit cards, and other financial obligations.

Types of Debt

Credit Card Debt
The AARP (2025) found that 46% of adults over 50 carry credit card debt, often due to unexpected expenses (87%). Median credit card balances for people aged 55–74 are about $3,500, compared to $2,700 for all households (Federal Reserve, 2022).

Medical Debt
The Consumer Financial Protection Bureau (2023) reported that in 2020, 7% of adults aged 65 and older—about 3.9 million people—had unpaid medical bills, despite 98% having health insurance. Average unpaid balances rose from $11,700 in 2019 to $13,800 in 2020, while the total medical debt among older adults increased to $53.8 billion.

Mortgage Debt
The Federal Reserve (2022) reported that adults aged 55 and older carried average mortgage balances ranging from $138,700 to $188,400, including home equity loans.

Debt Over Time

Debt among older Americans has risen significantly over the past several decades. Median debt for adults aged 55–64 peaked in 2010 at $105,170, likely due to the Great Recession (Federal Reserve, 2022). Although debt levels declined afterward, they have been rising again, reaching a median of $90,000 in 2022—compared with under $22,000 in 1989.

Emotional Impact

Debt also carries emotional consequences. The AARP (2023) reported that 61% of adults aged 50 and older with debt considered it a problem, with 16% describing it as a major problem. Nearly half (47%) reported emotional distress, including stress (34%), financial insecurity (28%), and depression (19%).

Tips for Repaying Debt

According to the AARP (2023), only 15% of older adults with credit card debt have a repayment plan. Recommended strategies include tracking spending, building a budget, setting financial goals, choosing a payoff method (such as the debt snowball or avalanche), and consulting a financial adviser.

References

AARP. (2023). Senior debt report. https://www.aarp.org

AARP. (2025). Credit card debt survey. https://www.aarp.org

Consumer Financial Protection Bureau. (2023). Medical debt among older adults: Findings from the Survey of Income and Program Participation. https://www.consumerfinance.gov

Employee Benefit Research Institute. (2024). Retirement confidence survey. https://www.ebri.org

Federal Reserve Board. (2022). Survey of consumer finances. https://www.federalreserve.gov/econres/scfindex.htm

MarketWatch Guides. (2023). Senior debt in America. MarketWatch. https://www.marketwatch.com