Retirees are struggling with credit card debt as they deal with high prices.

A recent Employee Benefit Research Institute (EBRI) survey of over 3,600 retirees found that more than two-thirds had outstanding credit card debt in 2024.1 That’s up from 40% in 2022.

Although inflation has fallen from its peak two years ago, prices remain elevated, and inflation is still above the Federal Reserve’s 2% target. This year, almost one-third (31%) of retirees reported spending more than they could afford. By contrast, in 2022 only 17% of retirees said they were spending more than they could afford.

People Are Retiring Earlier Than Anticipated—Which Could Be Hurting Their Finances

In the survey, almost 60% of retirees said they retired earlier than expected. The most common reasons were a health problem or disability (38%) or their employer undergoing a change such as downsizing (23%). When respondents did retire, nearly half said they hadn’t saved enough for retirement.

Meanwhile, many retirees didn’t have access to or fully benefit from workplace plans like a 401(k) or investment accounts like individual retirement accounts (IRAs) and Roth IRAs. Responses to the EBRI survey indicated that few were relying on such savings to fund their retirements: Only 17% of retirees used 401(k) plans as a retirement income source while 20% used funds from their IRAs.

Many respondents said they relied on Social Security (80%) or a guaranteed income source (39%), like a pension or annuity.