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Here’s How Much Debt the Average Retiree Still Carries at 70 (How Do You Compare?)

Why many Americans are entering retirement with ongoing debt

By Kristin Hitchcock , Edited by Laura Hohenstein

Updated June 4, 2026

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According to the Employee Benefit Research Institute, about 65% of households led by someone ages 65 to 74 still carried debt. That surprises a lot of people because retirement used to come with a pretty standard picture: the house was paid off, the kids were grown, and monthly bills were smaller. For many retirees today, though, that's no longer the reality.

Debt can create serious pressure once paychecks stop coming in, and it is one of the more serious, surprising retirement mistakes. It can help to know how much debt the average 70-year-old has and when those balances could become risky.

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The average retiree at 70 still owes significant debt

Federal Reserve Survey of Consumer Finances data shows that households led by someone aged 65 to 74 carry an average of $135,000 in debt. The median balance is much lower (closer to $45,000), which tells us something important: a smaller group of retirees with very high balances is pushing the average up significantly.

In other words, there are many retirees with little to no debt at all. However, there are also many in their 70s still juggling mortgages, car loans, credit cards, and other debt payments.

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Mortgage debt is the biggest burden

For most older Americans with debt, their mortgage is the biggest piece of it. Thirty years ago, reaching retirement with a house payment wasn't as common. Today, it's increasingly normal. Households led by someone aged 65 to 74 have an average mortgage debt of $176,000.

Today, many people are buying homes later and refinancing more often. Some homeowners also tapped into their home equity for renovations or debt consolidation. A manageable mortgage can fit into a retirement plan, but larger house payments can become stressful once income becomes more fixed.

Credit card debt can be troublesome on a fixed income

A mortgage at a reasonable rate is one thing. Credit card debt is a different story entirely. High interest rates make it much harder for retirees to get ahead once balances start building.

Often, this isn't necessarily tied to luxury spending or reckless purchases. Sometimes, it's groceries creeping higher every month. Or prescription drug costs. Or a surprise home repair that lands on a card because cash reserves aren't available. Retirees who only make minimum payments may find balances hanging around far longer than expected.

According to a 2025 AARP survey, 42% of adults ages 65 to 74 carry credit card debt. Of those carrying a balance, nearly half owe $5,000 or more, and 28% carry $10,000 or more. About 47% of older adults with credit card debt use cards to cover basic living expenses they can't otherwise afford.

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Medical expenses continue to cause financial stress

A lot of people assume Medicare covers most health care costs once retirement begins. In reality, many retirees still deal with significant out-of-pocket expenses. Dental work, hearing aids, prescriptions, specialists, and long-term care costs add up fast.

For some households, health care debt slowly builds throughout the years. A few thousand dollars here and a surprise hospital stay here can eventually turn into credit cards or payment plans. Many retirees simply don't plan for the hundreds of thousands in medical costs the average retiree ends up paying.

Car payments are sticking around

Car loans are becoming increasingly common among retirees than they once were. Cars simply cost more now, and loan terms are longer than they used to be.

A retiree with a modest monthly payment might not feel much strain. However, newer vehicles with larger payments can eat into a fixed retirement income every month. When combined with insurance, fuel, and maintenance costs, transportation expenses can often become a much bigger part of the retirement budget than most retirees can afford.

Not all retirement debt is automatically bad

Debt itself isn't necessarily a problem. A retiree with a low-rate mortgage, healthy retirement accounts, and a considerable monthly income may have no issue managing several kinds of debt.

The important question is whether debt payments are limiting flexibility. If monthly obligations leave little room for emergencies and inflation, that's when problems start showing up. Two retirees with the exact same debt balance may experience completely different levels of financial stress.

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Warning signs that debt is becoming a problem

When judging your financial situation, pay more attention to patterns than raw balances alone. Some signs that retirement debt may be becoming hard to manage include:

Using credit cards to cover regular monthly bills
Pulling extra money from retirement accounts
Carrying balances with very high interest rates
Skipping health care because payments are too tight
Continuing to borrow despite shrinking income

These situations don't necessarily mean financial disaster is coming, but they may signal growing pressure that becomes harder to reverse over time.

Bottom line

Retirement debt is relatively common. While some retirees can comfortably manage mortgages and small loans, high-interest debt and rising monthly expenses can create serious financial pressure once income becomes fixed.

Flexibility matters a ton when you're trying to free up your retirement budget. Even reducing a few recurring expenses or paying down a high-interest balance can free up your retirement budget more than aggressively chasing every debt at once. Small monthly improvements often matter more in retirement than dramatic financial overhauls.

FAQs

What is the most common type of debt among retirees?

Mortgage debt accounts for the largest share of what retirees owe in total dollars, but credit card debt is the most widespread by prevalence. According to a LendingTree analysis of adults ages 66 to 71, 97.1% carry some form of nonmortgage debt, with 92.6% having credit card debt of some kind. Auto loans actually account for the largest share of nonmortgage debt in dollar terms, at 33.3% of the average balance, with credit card balances close behind at 31.7%.

Can creditors garnish Social Security for unpaid debt?

Federal law generally protects Social Security benefits from garnishment by private creditors such as credit card companies or medical providers. However, the federal government can garnish benefits for debts like unpaid taxes, student loans, or child support.

One important caveat: if your Social Security is deposited into a bank account alongside other income, federal rules require banks to protect only up to two months of electronically deposited benefits. Amounts beyond that threshold could potentially be vulnerable depending on the circumstances.

Is it normal to still have a mortgage at 70?

It is increasingly common. According to the Urban Institute's analysis of the 2022 Survey of Consumer Finances, 38% of homeowners ages 65 to 74 carried a mortgage in 2022, up from 29% in 1998. Longer loan terms, later home purchases, and cash-out refinancing over the years have all contributed to more retirees carrying a house payment well into their 70s.

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