4 Key Reasons Retirement Is Out of Reach for Many Older Americans

Cynthia Measom

Tue, Jun 17, 2025, 6:03 AM 3 min read

Over half of Americans aged 55 and up said debt has held them back from retirement, and 67% said they plan to continue working during the years they originally thought they’d be retired, according to a recent survey conducted by Talker Research on behalf of National Debt Relief.

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For many, retirement is no longer a planned date but a moving target they’re finding difficult to reach anytime soon. Here are some key reasons retirement is on the back burner for many older Americans.

Also see 35 retirement planning mistakes you’re wasting money on.

More than 7 in 10 older Americans say they’re in debt, according to the Talker Research and National Debt Relief survey, and it’s not just the amount that’s concerning. Over half of those carrying debt say they feel overwhelmed and worry they’ll never pay it off.

According to AARP, nearly half (47%) of older adults who carry credit card balances are using them to cover basic living expenses, like food and utilities, because they don’t have enough income to get by. And about 17% rely on credit cards to meet those needs every month.

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Older adults are carrying debt from multiple sources, which can add up, especially if the payments are hundreds of dollars each. The Talker Research and National Debt Relief survey reported the following about the debt of older adults:

• 45% have credit card debt, averaging $9,000 with monthly payments of $418.

• 30% still owe on mortgages, averaging $72,000, paying about $797 monthly.

• 17% carry medical debt, averaging $9,144, with $222 paid monthly.

• 22% have auto loans, averaging $17,000, paying $446 a month.

AARP reported that many older Americans are carrying mortgage debt longer because refinancing has become more popular.

According to Talker Research, the average older adult with debt has about $29,187 in savings. But 61% of respondents said they definitely don’t have enough to live comfortably in retirement.

Nearly half say they have $20,000 or less in savings, and 22% report having no savings at all. Even those still working don’t feel prepared, as 48% said they aren’t set up for retirement success.

According to a recent Gallup Poll, 40% of Americans report not having a retirement savings plan.