For most of my career as a bankruptcy attorney, there was one thing I could almost count on. By the time people reached retirement age, many had their homes paid off, drove older vehicles with no payments, and had little or no credit card debt. Social Security, along with a pension or retirement savings, was often enough to provide a modest but comfortable retirement.

That is no longer what I am seeing.

Today, I regularly meet with seniors who are approaching retirement—or who have already retired—while carrying debt levels that would have been almost unheard of a generation ago. Instead of looking forward to retirement, many are wondering whether they can afford to stop working at all.

The New Face of Retirement

The financial picture for many older Americans has changed dramatically.

It is becoming increasingly common for seniors to have:

• A substantial mortgage payment.
• A $600 to $900 monthly automobile payment.
• Thousands of dollars in high-interest credit card debt.
• Home equity loans or lines of credit.
• Student loan obligations, including Parent PLUS loans taken out to help children attend college.

Instead of entering retirement debt-free, many seniors are entering retirement with monthly obligations that rival those of families in their thirties and forties.

The Numbers Tell the Story

The statistics confirm what I am seeing every day in my office.

According to a 2025 AARP survey:

• Nearly half of Americans age 50 and older who carry credit card debt use credit cards to pay for basic living expenses such as groceries, utilities, and housing.
• 37% report having more credit card debt than they had one year earlier.
• 48% of older adults carrying credit card balances owe $5,000 or more, and 28% owe at least $10,000.
• Almost 9 out of 10 say unexpected expenses contributed to their credit card debt.

Housing debt has also become far more common among retirees.

Recent Federal Reserve data show that nearly 30% of households between ages 65 and 74 still have mortgage debt, and even among those over age 75, a significant percentage continue making monthly mortgage payments. Median mortgage balances remain well over $100,000 for many retirees.

At the same time, overall household debt continues to reach record levels. The Federal Reserve Bank of New York reports that Americans now owe nearly $19 trillion in household debt, including record balances on mortgages, credit cards, auto loans, and student loans.

Why Is This Happening?

There isn’t one single cause.

Instead, many families have experienced years of financial pressure.

Housing prices have risen dramatically. New vehicles routinely cost more than $50,000. Medical expenses continue to increase. Inflation has stretched household budgets. Many parents borrowed heavily to help children attend college through Parent PLUS loans. Others refinanced homes or used home equity to help children, support aging parents, or simply keep up with rising costs.

For many seniors, debt didn’t accumulate because they lived extravagantly.

It accumulated because life became more expensive.

Retirement Income Doesn’t Stretch Like It Used To

Social Security provides an essential safety net, but for many retirees it was never intended to cover large mortgage payments, expensive vehicle loans, and thousands of dollars in revolving credit card debt.

A monthly budget that worked while earning a full-time paycheck often becomes impossible after retirement.

That is when many people begin using credit cards simply to bridge the gap between income and expenses.

Unfortunately, high interest rates can quickly turn a temporary problem into a permanent one.

Bankruptcy Is Not a Financial Failure

Many seniors hesitate to consider bankruptcy because they believe they should have “known better.”

I disagree.

The economy has changed dramatically over the past several decades. The financial assumptions that worked for previous generations often no longer apply.

Bankruptcy laws exist for exactly these situations.

In many cases, Chapter 7 can eliminate overwhelming credit card debt, medical bills, and unsecured personal loans, allowing retirees to preserve their limited retirement income for living expenses instead of minimum payments.

Even when someone has substantial assets, careful planning often allows them to obtain debt relief while protecting their home, retirement accounts, and other exempt property.

Every situation is different, but many seniors are surprised to learn they have more options than they thought.

My Advice

If you are approaching retirement and your monthly debt payments leave you wondering whether you can ever afford to stop working, don’t ignore the problem.

The sooner you understand your legal options, the more choices you will have.

You have worked your entire life to reach retirement. You deserve to spend those years enjoying your family, your hobbies, and your peace of mind—not worrying every month about which bill can wait.

A Personal Word from Walter Metzen

After more than 30 years of helping thousands of Michigan families through financial hardship, I have never believed that bankruptcy is about giving up. It is about getting a fresh start. More seniors than ever are finding themselves carrying debt they never expected to have in retirement. If that sounds like your situation, know that you are not alone—and you are certainly not the first person to face it. Before you decide to postpone retirement or spend your retirement years overwhelmed by debt, take the time to learn your options. One conversation could change the course of your retirement and give you the financial freedom you worked so hard to earn.