Rising Debt Among Retiring Baby Boomers Poses Financial Challenges
Baby boomers are increasingly entering retirement with significant debt levels that could strain their finances in later years. According to the Federal Reserve's Survey of Consumer Finances, nearly 70% of baby boomers had some form of debt in 2022, with younger boomers (ages 58–66) more likely than older ones (ages 67–76) to carry balances. Median household debt for the generation was $62,450, while the average reached nearly double that at $147,122. Mortgages remain the largest source of debt among boomers, with a median balance of $116,000 on their primary residence. Credit card balances are also common, averaging around $3,000 per household and often carrying high interest rates that can accelerate debt growth. Education loans—likely including Parent PLUS or graduate-level borrowing—are another significant financial burden outside housing. Debt in retirement is particularly challenging because it increases expenses at a time when income sources may be limited. Unlike working years where additional earnings are possible, retirees have fewer options to offset rising costs like healthcare and living expenses.
Topics: Baby boomers Debt Financial pressure Retirement planning