Average Retiree Carries $11,349 Non-Mortgage Debt Into Retirement
A LendingTree analysis of approximately 40,000 anonymized credit reports reveals that 97.1% of retirees aged 66 to 71 carry non-mortgage debt into retirement, with a median balance of $11,349. This figure excludes mortgages and reflects the typical amount owed by most households on the day Social Security becomes their primary income source. The largest portions of this debt are auto loans (33.3%) and credit card balances (31.7%), followed by student loans (15.6%) and personal loans (13%). Credit cards, with an average APR near 20.94%, pose a particular challenge due to high interest rates that compound faster than Social Security's annual cost-of-living adjustment of 2.8%. This dynamic can trap retirees on fixed incomes in growing debt. Regional differences are significant, ranging from $18,107 in San Antonio to $6,717 in Salt Lake City, largely due to variations in auto loan financing practices.
Tickers: $TREE
Topics: 4% rule auto loans credit card debt retirement debt Social Security