According to the 2024 Annual Retirement Study from Allianz Life Insurance Company of North America (Allianz Life), a significant number of Americans are grappling with debt that may hinder their retirement savings and overall financial stability.
Key findings reveal that 55% of Americans are actively working toward paying off debt to meet their long-term financial goals. This trend is particularly pronounced among Gen X, with 64% stating that paying off debt is a current priority, compared to 54% of millennials and boomers.
Debt is a notable barrier to retirement savings, especially for those who wish they could save more. Among these individuals, 46% cite non-housing debt such as car loans, credit cards, and student loans as significant obstacles. Millennials are most affected, with 56% indicating that such debts limit their retirement savings, compared to 50% of Gen Xers and 35% of boomers.
Housing debt is also a considerable challenge, with 34% of respondents stating that it prevents them from saving adequately for retirement. Gen Xers are most affected by housing debt, followed by millennials and boomers.
The study also highlights the challenges of juggling multiple financial priorities. Nearly two-thirds of Americans (62%) say they are balancing too many financial goals, including saving for retirement, paying off debt, and saving for their children’s education. Millennials are especially overwhelmed, with 73% reporting difficulties in prioritizing these goals.
Additionally, 40% of Americans worry that their current debt will negatively impact their future quality of life, a concern that is most prevalent among millennials (53%). Hispanic Americans (53%) are also more likely to express this worry compared to other demographic groups.
Despite these widespread concerns, only 14% of Americans have discussed their debt worries with a financial professional. Allianz Life encourages individuals to create a written plan with the help of a financial professional to effectively balance debt management and long-term savings.
About Allianz Life Insurance Company of North America
Allianz Life Insurance Company of North America has been providing trusted financial solutions since 1896, helping millions of Americans prepare for retirement. As part of Allianz SE, a global leader in financial services, Allianz Life is dedicated to helping clients navigate financial uncertainties with innovative risk management products and personalized financial planning support.