According to a 2025 study by LendEDU, a worrying 41.5% of baby boomers live paycheck to paycheck.
Compounding the problem, many of these older adults carry consumer debt. A survey of older Americans by National Debt Relief found that 72% carry debt. Overall, respondents estimate needing an average of 12 more years to reach their retirement goals, despite having an average age of 61.
Read More: I Asked ChatGPT When I’ll Be Able To Retire Based on My Current Finances — Here’s What It Said
Check Out: 9 Downsizing Tips for the Middle Class To Save on Monthly Expenses
The following challenges are keeping many stuck in a rut of continuing to work and live paycheck to paycheck.
Little or No Savings
The National Debt Relief study found that nearly half (49%) of older adults have less than $20,000 in savings. A full 22% have no savings whatsoever.
“Without short-term savings, people tap their retirement savings for everyday emergencies and sabotage their long-term plans,” explained Devin Miller, CEO of SecureSave. “And once you hit your 50s or 60s, the timeline to recover shrinks. That’s exactly why more boomers are stuck working longer than they expected.”
Be Aware: 6 Key Signs You’ll Run Out of Retirement Funds Too Early
Challenging Economy for Earning as an Older Adult
In the National Debt Relief study, nearly three-quarters (72%) of respondents blamed the economy as the primary reason they can’t save. The next most frequently cited reason was debt, at 36%.
Among the 72% of older respondents in debt, they averaged retirement savings of just $29,186. With little time remaining to save and invest — and for those investments to compound — they face a lean retirement.
Credit Card Debt
Credit card debt made up the most common debt among those carrying some kind of consumer debt. These older adults carried an average balance of nearly $9,000, with a monthly payment averaging $418, per the National Debt Relief survey.
Melanie Musson, personal finance expert with Quote.com, observes that many parents have also taken on student loan debt or added to their own credit card balances while helping their children with college tuition. “These debts set back retirement savings. Baby boomers are working longer as they try to pay off these debts before retiring,” she said.
Medical Debt
A troubling number of older Americans also carry crushing medical debt. The National Debt Relief study found nearly 1 in 5 respondents carry medical debt, at an average balance of $9,144.
“Healthcare costs are the top financial worry in retirement among Americans,” said Whitney Stidom of health insurance marketplace eHealth. “People looking to save money entering retirement must better understand their insurance options to slash their healthcare bills.”
Healthcare costs keep surging, however, making it a moving target for many Americans. In fact, rising cost of living across the board worries older working adults, with 69% of respondents naming it their No. 1 concern about the future.
More From GOBankingRates
- 5 Ways Trump Signing the GENIUS Act Could Impact Retirees
- How Happy Couples Handle Money -- Even When They Disagree
- 6 Big Shakeups Coming to Social Security in 2025
- Mark Cuban Tells Americans To Stock Up on Consumables as Trump's Tariffs Hit -- Here's What To Buy
This article originally appeared on GOBankingRates.com: Nearly 42% of Boomers Are Living Paycheck to Paycheck: Here’s How It’s Delaying Retirement
