Rising Credit Card Debt Among Older Adults: A Study
Overview of Credit Card Debt in Older Adults
According to a recent survey conducted by AARP, a significant 52% of adults aged 50-64 reported having credit card debt. This trend is troubling as many are relying on credit cards to finance essential living expenses, indicating a deeper issue concerning financial stability in this age group.
Key Findings from the AARP Survey
The survey included responses from 4,846 adults aged 50 and older, specifically those who carried credit card debt from the previous month. The results shed light on the financial pressures faced by older adults:
- Approximately 47% of participants have utilized credit cards for basic necessities such as food, housing, utilities, and healthcare, with 17% indicating they do this monthly.
- More than one-third (37%) reported an increase in their credit card debt compared to the previous year.
- A striking 28% of respondents carry a balance of $10,000 or more on their credit cards.
- Half of the respondents attributed their credit card debt to healthcare expenses.
Implications for Retirement Security
Indira Venkat, AARP’s senior vice president of research, highlighted the risks associated with accumulating credit card debt, stating, “A concerning number of older adults carry credit card debt today just to make ends meet. Credit card debt can jeopardize retirement security.”
The survey also revealed that older adults earning less than $40,000 annually are particularly likely to maintain a monthly credit card balance, further complicating their financial planning for retirement.
Trends in Credit Card Debt Among Retirees
A separate study conducted in November 2024 by the Employee Benefit Research Institute observed a significant rise in credit card debt among retirees. The findings indicated that approximately 68% of retirees had outstanding credit card debt in 2024, a considerable increase from 40% in 2022.
Conclusion
The increasing reliance on credit cards for basic living expenses among older adults signals a growing financial concern that could affect their long-term retirement security. As the cost of living rises, this demographic faces mounting challenges to manage their debt effectively.