3 Ways Unsecured Debt Is Coming for Your Retirement

Dawn Allcot

Sun, Jul 13, 2025, 6:01 PM 3 min read

Are you envisioning a retirement filled with travel, relaxing days on your front porch or in your backyard oasis, and fun with the grandchildren? Credit card debt could be keeping you from fulfilling those dreams.

A new survey from career resource website Zety found that almost half of Americans polled have more than $25,000 in unsecured debt, while 20% owe more than $100,000. High minimum monthly payments and mounting interest may force you to delay retirement, take on a second job or side gig, or scale back your spending now and in the future.

Read Next: 4 Retirement Expenses Boomers Didn’t Plan for — but Should Have

Learn More: These Cars May Seem Expensive, but They Rarely Need Repairs

Here’s how some Americans are coping with debt and how it could affect their retirement plans.

The survey showed that 38% of American workers have taken on second jobs or side gigs to cover their debt payments. If you were debt-free, that money could be going toward retirement savings instead.

Without a solid plan to get out of debt, retirement could become a distant dream; you may even have to continue working two jobs instead of retiring.

Be Aware: I’m a Financial Expert: This Is the No. 1 Mistake Americans Make With Their 401(k)

If you’re passionate about your work, putting off retirement may not seem like a bad idea. In fact, data from Forbes showed that 32% of retirees wish they’d kept working longer. Holding a job or side gig after the age of 65 offers a sense of purpose and can contribute to overall well-being, along with physical and mental health, according to a new report from the University of Michigan’s Institute for Healthcare Policy and Innovation.

However, if you are stuck in a job you don’t like or that doesn’t offer flexibility to take time off for important healthcare appointments, it can negatively impact your health.

The bottom line? Working an unfulfilling job in your 60s and 70s can have a negative effect on your overall health and well-being, especially if you feel forced to work to pay off debt.

If that’s your situation, you’re not alone. A separate survey from Resume Builder found that, of the retired seniors polled who said they intend to go back to work in 2025, 34% are returning to the workforce to pay off debt.

Maybe you have a solid 401(k) and other savings and will be able to retire as planned in your early-to-mid 60s. But credit card debt could force you to scale back spending in retirement to make ends meet. According to the Zety survey, 38% of those polled have “cut non-essential spending” to make debt payments.