Boomer wealth masks rising debt as retirees face tighter budgets

Federal Reserve data show Baby Boomers own over half of U.S. household wealth, totaling nearly $90 trillion, despite representing only about 20% of the population. This wealth is unevenly distributed, with the top 10% holding 71% of the generation’s assets, while a third of those 55 and older have no retirement savings. Debt is increasingly common: more than half of households led by someone 75 or older carried debt in 2022, up from 41.3% a decade earlier, and the average Boomer owes about $92,619, largely from credit cards.

Fixed Social Security and pension incomes are often insufficient as Medicare premiums and long-term care costs outpace inflation, leading some seniors to rely on home-equity lines of credit or continue working. Experts note that home-value appreciation can create a false sense of security, and borrowing against equity may trigger higher Medicare premiums. Family support obligations further pressure retirees, causing delayed savings or additional borrowing.