Industry News

On March 12, 2020, the Employee Benefit Research Institute (EBRI) released its issue brief, The Impact of Rising Household Debt Among Older Americans.  The report examines the debt status of older Americans both preretirement and postretirement over the period from 1992 to 2016.  According to EBRI, “carrying high levels of debt at older ages has implications for retirees’ financial security and pre-retirees’ decision to retire and claim Social Security.  Staying in the labor market longer and delaying the receipt of Social Security benefits are potential ways older Americans choose to deal with increasing levels of debt.”

 The key findings include:

• For those ages 50-64, the average total debt increased significantly from $80,000 in 1992 to $120,000 in 2016 and reached its highest of $140,000 in 2010.
• For those ages 65-74, the amount of debt increased from 47% in 1998 to 57% in 2016 and reached its highest in 2010 and slightly decreased afterward.
• For those ages 75 and older, the percentage having debt as well as the average and median debt remained relatively unchanged from 1992 to 2016.

The findings are based on the Health and Retirement Study (HRS) and the Consumption and Activities Mail Survey (CAMS) of the spending behavior of older Americans for the age groups 50-64, 65-74 and 75 or older between 2005 and 2017, biennially.

The summary is available here.