Recent reports reveal a troubling trend among American retirees: an unprecedented number are carrying credit card debt, raising concerns about financial stability in retirement. According to the 2024 Spending in Retirement survey by the Employee Benefit Research Institute (EBRI), over 40% of retirees have credit card balances, making it the most common form of debt among seniors. This issue is compounded by the dual challenges of inflation and high interest rates, which disproportionately affect those on fixed incomes. The survey indicates that nearly 31% of retirees are spending beyond their means, a significant increase from previous years. With median assets reported at just $25,000, many retirees are at risk of financial crises, including bankruptcy. Experts highlight the difference between "good" and "bad" debt, with credit card debt categorized as particularly harmful due to high interest rates. As credit card usage becomes more prevalent among retirees, the potential for financial instability looms larger.
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