Most Americans are saddled with debt, and many fear their financial future could be impacted by it, a new survey has found.
According to the 2024 Annual Retirement Study from Allianz Life Insurance Company of North America, 55% of Americans are working toward paying off debt to meet their long-term financial goals. More than other generations, Gen X has made this a priority. According to the survey, 64% of Gen Xers report that they’re working to pay off debt, compared with 54% of millennials and 54% of boomers.
Debt has hindered saving for retirement, many respondents report. Among them, 46% say non-housing debt from car loans, credit cards and student loans hamper their savings efforts. Millennials (56%), Gen Xers (50%) and boomers (35%) say non-housing debt is limiting their retirement savings.
The survey also found that 34% say that housing debt keeps them from saving for retirement. The breakdown by generation is: Gen X (39%), millennials (33%), and boomers (34%).
“Debt can have a significant impact on achieving long-term financial goals like retirement,” said Kelly LaVigne, VP of consumer insights, Allianz Life. “It is important to find a balance between paying off debt and saving for your financial future. Limiting retirement saving because of debt can leave you vulnerable to outliving savings in retirement.”
Survey respondents say they have too many financial goals, such as saving for retirement, their children’s education and paying off debt. Most Americans (62%) say they are balancing so many goals that it’s hard to focus and prioritize. Millennials lead on this question (73%), compared with Gen Xers (50%) or boomers (25%).
The survey found that 40% of Americans fear their current debt with affect their quality of life in the future. This fear is most widely held by millennials (53%), followed by Gen Xers (44%) and boomers (18%). Hispanic Americans (53%) express this concern more than Black/African Americans (48%), white Americans (40%) and Asian/Asian Americans (39%).
However, only 14% of Americans served by a financial professional have discussed this concern with their advisor.
“For all financial goals, it’s important to have a written plan of how you will achieve them,” LaVigne said. “A financial professional can help you create that plan to balance paying off debt while saving for your financial future.”
