Key Takeaways
- An Employee Benefit Research Institute survey found that more than two-thirds of retirees had outstanding credit card debt in 2024, up from 40% in 2022.
- Even though inflation has cooled, high prices weigh on retirees. Almost a third of retirees said they spent more than they could afford in 2024.
- Most retirees said they retired earlier than they planned, and half said they didn’t have enough saved when they ultimately did retire.
Retirees are struggling with credit card debt as they deal with high prices.
A recent Employee Benefit Research Institute (EBRI) survey of over 3,600 retirees found that more than two-thirds had outstanding credit card debt in 2024. That’s up from 40% in 2022.
Although inflation has fallen from its peak two years ago, prices remain elevated, and inflation is still above the Federal Reserve’s 2% target. This year, almost one-third (31%) of retirees reported spending more than they could afford. By contrast, in 2022 only 17% of retirees said they were spending more than they could afford.
People Are Retiring Earlier Than Anticipated—Which Could Be Hurting Their Finances
In the survey, almost 60% of retirees said they retired earlier than expected. The most common reasons were a health problem or disability (38%) or their employer undergoing a change such as downsizing (23%). When respondents did retire, nearly half said they hadn’t saved enough for retirement.
Meanwhile, many retirees didn’t have access to or fully benefit from workplace plans like a 401(k) or investment accounts like individual retirement accounts (IRAs) and Roth IRAs. Responses to the EBRI survey indicated that few were relying on such savings to fund their retirements: Only 17% of retirees used 401(k) plans as a retirement income source while 20% used funds from their IRAs.
Many respondents said they relied on Social Security (80%) or a guaranteed income source (39%), like a pension or annuity.
