Demographic and Socioeconomic Characteristics of Older Households with Debt: 2019

August 9, 2021 R46870

Demographic and Social Socioeconomic
August 9, 2021
Characteristics of Older Households with Debt: Zhe Li
2019
Analyst in Social Policy

Debt among aged households (i.e., households whose head is 65 years old or older) has increased
substantially in the past three decades. From 1992 to 2019, the share of aged households with

debt increased from 43.0% to 62.1%, and the median amount of debt among aged households
with debt rose from $7,294 to $34,000 (in 2019 dollars).
Comparing the debt to a household’s assets or income can suggest the risk that the debt poses to the household's financial
health. These debt ratios generally had small increases from 1992 to 2019. In 2019:
 4.8% of aged households with debt had a negative net worth, or debt that is greater than assets.
 The median debt-to-asset ratio (or leverage ratio), which measures the share of assets borrowed, was 12.8%
for aged households with any debt. About 7.3% of aged households with debt had a debt-to-asset ratio
greater than 80% (a level usually used by financial institutions to determine the interest rate offered for
mortgages).
 The median debt-payment-to-income ratio—the share of income available to make required debt
payments—was 13.7% among aged households with any debt, and about 9.6% of indebted aged households
had a debt-payment-to-income ratio greater than 40% (a percentage often used by financial institutions to
make decisions on loan applications).
 About 2.5% of aged households with debt had delinquent debt payments past due 60 days or more.
These statistics show that while debt may not be a large concern for aged households overall, debt may be problematic for
certain subgroups. Debt holdings and debt burden among older households generally vary by demographic and
socioeconomic characteristics. In 2019, for example:
 Households headed by individuals aged 80 years and older were less likely to hold debt than were aged
households younger than age 80, but if they did have debt, they were more likely to have a debt-payment-
to-income ratio greater than 40% and were more likely to be delinquent on debt payments;
 Aged households who identified as Black/African American, Hispanic, or Latino were more likely to have
a negative net worth than households who identified as other races, and they were also more likely to have
a leverage ratio greater than 80%, a debt-payment-to-income ratio greater than 40%, and a higher
delinquency rate;
 Aged single households—divorced or separated, widowed, and never married households—were more
likely to have negative net worth, a leverage ratio greater than 80%, and a debt -payment-to-income ratio
greater than 40%; and
 Aged households in the bottom 40% of the household income distribution were more likely to have
negative net worth, and those in the bottom 20% of the household income distribution were more likely to
have a higher leverage ratio and a debt-payment-to-income ratio greater than 40%.
Primary residence mortgage debt was the largest type of debt among aged households, while credit card debt was the most
common type of debt in 2019. Mortgages are typically considered to be a relatively safe type of debt to hold because they are
secured by a home, which generally retains or increases in value, while credit card debt often has high variable interest rates
and is not secured by any underlying assets. Student loan debt has increased among aged households in the past two decades,
and aged households with student loans were significantly more likely to have student loans for child ren than for themselves
or their spouses. Stakeholders have expressed concern that holding student loan debt in retirement may affect the financial
balance sheets of older households. Unlike other types of loans, student loans are usually not discharged if a borrower
declares bankruptcy, and some Social Security benefits can be withheld to recover the student loan balance. Compared with
households that identified as another race, aged households who identified as Black/African American were less likely to
have primary residence mortgage debt but more likely to have student loan and credit card debt.
Congressional Research Service

Demographic and Social Characteristics of Older Households with Debt: 2019

Some older households with debt—such as certain minorities, single households, and people with limited income or assets—
may have limited income to service debt. Policymakers have proposed and implemented policies to help older debtors, such
as programs to improve older Americans’ financial literacy with debt management and to change the impact of student loans
on Social Security income and retirement savings.
Congressional Research Service

link to page 29 Demographic and Social Characteristics of Older Households with Debt: 2019

Contacts
Author Information ....................................................................................................... 24

Congressional Research Service

Demographic and Social Characteristics of Older Households with Debt: 2019

Introduction
In recent years, older Americans have been increasingly likely to carry debt into retirement, and
over time, the median amount of debt for older households has also grown substantial y.1 From
1992 to 2019, the share of households headed by individuals aged 65 and older (or aged
households) who held any debt increased from 43.0% to 62.1%, and their median debt level rose
from $7,294 to $34,000 (in 2019 dollars).
Compared with younger households, older households are general y less likely to have debt;2
however, the older population’s share of debt and new bankruptcies has increased in the past 20
years. For example, from 2000 to the end of 2020, the share of total U.S. debt balance held by
individuals aged 60 and older increased from 12% to 23%, and the share of new bankruptcies
filed by those aged 60 and older increased from 10% to 22%.3
Several factors may have contributed to increased debt among older households. For example,
compared with earlier cohorts, people now have longer life expectancies4 and better health,5 and
they work longer,6 so they may have chosen to maintain more debt later in life. Additional y,
increases in prices for housing, automobiles, and education, as wel as longer loan maturities for
certain types of debt, may have resulted in more households with debt during retirement.7
Stakeholders have concerns about how increases in debt affect retirement security. First, rising
debt burdens increase older households’ monthly expenses, potential y leaving fewer funds
available for consumption of life necessities, such as food, health care, and prescription drugs.
Second, in addition to mortgage debt, the older population’s increased debt burden also results
from increased student loans and credit card debts. Aged households with student loans were
significantly more likely to have student loans for their children than for themselves or their
spouses.8 Stakeholders have expressed concern that holding student loan debt in retirement may

1 CRS Report R45911, Household Debt Among Older Americans, 1989-2016.
2 In 2019, about 81.9% of households headed by those younger than age 65 had some debt, with a median debt of
$80,000. T his data is consistent with life-cycle models of behavior—people tend to borrow the most in young
adulthood, borrow less during middle age, and then slowly deleverage through old age as they pay down debt. See, for
example, Franco Modigliani and Richard Brumberg, “Utility Analysis and the Consumption Function: An
Interpretation of Cross-Section Data,” in Post-Keynesian Econom ics, ed. Kenneth K. Kurihara (New Brunswick, NJ:
Rutgers University Press, 1954), pp. 388-436; and Milton Friedman, “ T he Permanent Income Hypothesis,” in A Theory
of the Consum ption Function, ed. Milton Friedman (Princeton, NJ: Princeton University P ress, 1957), pp. 20-37.
3 New York Fed Consumer Credit Panel/Equifax, Household Debt and Credit, Report 2020 Q4, Charts 20 and 30,
https://www.newyorkfed.org/microeconomics/hhdc/background.html.
4 See Social Security Board of T rustees, The 2020 Annual Report of the Board of Trustees of the Federal Old -Age and
Survivors Insurance and Federal Disability Insurance Trust Funds, 2020, T able V.A4, https://www.ssa.gov/OACT /
T R/2020/index.html.
5 See Richard W. Johnson, “ Is It T ime to Raise the Social Security Retirement Age?,” Urban Institute, November 2018;
Alicia H. Munnell, “Socioeconomic Barriers to Working Longer,” Journal of the American Society on Aging (Fall
2019), pp. 42-50; Congressional Budget Office, Em ploym ent of People Ages 55 to 79, September 2019.
6 U.S. Bureau of Labor Statistics, “ Employment Projections: Civilian Labor Force Participation Rate by Age, Sex,
Race, and Ethnicity,” September 2020, https://www.bls.gov/emp/tables/civilian-labor-force-participation-rate.htm.
7 See Annamaria Lusardi, Olivia Mitchell, and Noemi Oggero, Debt and Financial Vulnerability on the Verge of
Retirem ent, National Bureau of Economic Research, Working Paper no. 23664, August 2017; CRS In Focus IF11192,
The Autom obile Lending Market and Policy Issues; and Congressional Budget Office, The Volum e and Repaym ent of
Federal Student Loans: 1995 to 2017 , November 2020.
8 Government Accountabilit y Office, Debt Increased for Older Americans over Time, but the Implications Vary by
Debt Type, GAO-21-170, April 2021.
Congressional Research Service
1

Demographic and Socioeconomic Characteristics of Older Households with Debt: 2019

affect the financial balance sheets of older households. Unlike other types of loans, student loans
are usual y not discharged if a borrower declares bankruptcy, and some Social Security benefits
can be withheld to recover the student loan balance.9 Credit cards often have high variable
interest rates and are not secured by any underlying assets. Lastly, increased debt burdens may
disproportionately affect certain vulnerable groups of the older population, such as minorities and
people with limited income or assets.10
This report discusses debt among older households based on various demographic and
socioeconomic characteristics, such as age, race/ethnicity, education, marital status, home
ownership, and household income or asset distributions. The report also discusses policy options
related to debt and retirement security. Understanding how debt may affect different types of
older households may help policymakers evaluate debt-related financial risks and the financial
security of the older population.
Survey of Consumer Finances Data
Data analysis in this report is primarily based on the Federal Reserve’s 2019 Survey of Consumer
Finances (SCF). The SCF is a triennial survey conducted on behalf of the Board of Governors of
the Federal Reserve and contains detailed information on U.S. household finances, such as the
amount and types of assets owned, the amount and sources of income, the amount and types of
debt owed, and detailed demographic information on the head of the household and spouse.11 The
SCF is designed to be national y representative of the population of U.S. households, of which
there were 128.6 mil ion in 2019.12
The debt information in the SCF is general y collected at the household level. Types of debt
include primary residence mortgages, other residential debt, auto loans, student loans, and credit
card debt, as wel as other types of debt.13 Because the SCF data was collected before the onset of
the COVID-19 pandemic, the results in this report show pre-pandemic debt holdings among older
households.14

9 See 31 U.S.C. §3716(c)(3)(A); 31 C.F.R. §285.4(e).
10 See, for example, Barbara A. Butrica and Stipica Mudrazija, Financial Security at Older Ages, Center for Retirement
Research at Boston College, WP 2020-19, December 2020.
11 Because the data are based on a survey, they are estimates and have sampling error—that is, the difference between a
sample statistic used to estimate a population parameter and the actual value of the parameter known only by surveying
the entire population. T he SCF, like other surveys, also likely contains nonsampling error—error due to causes other
than the fact that a sample was used in place of the entire population (for instance, respondents misremembering or
misreporting income amounts, respondents failing to answer the questionnaire, or errors occurring during the
processing of the data file).
12 Household in the SCF is defined as “the primary economic unit, which consists of an economically dominant single
individual or couple (married or living as partners) in a household and all other individuals in the household who are
financially interdependent with that individual or couple.” For information on the SCF, see Board of Governors of the
Federal Reserve System, “ Survey of Consumer Finances (SCF),” https://www.federalreserve.gov/econres/scfindex.htm.
13 Other debt products may include loans for household appliances, furniture, hobby or recreational equipment, medical
bills, a business or investment, or loans from friends or relatives. For more information on consumer finance, see CRS
Report R45813, An Overview of Consum er Finance and Policy Issues.
14 For information about household debt during the pandemic, see CRS Report R46578, COVID-19: Household Debt
During the Pandem ic.
Congressional Research Service
2

Demographic and Socioeconomic Characteristics of Older Households with Debt: 2019

Debt Holding for Aged Households
In 2019, about 62.1% of aged households held debt. Among aged households that held any debt,
the median debt amount was $34,000, and the average amount was $98,959.15
In general, households can use assets to guard against financial risks. In many cases, the more
assets a household has, the less likely it is to default on its debt. In 2019, 4.8% of aged
households with debt had negative net worth (i.e., more debt than assets). Negative net worth may
potential y suggest unsustainable debts and pose a serious financial risk for the household
because, in case of income loss, the household could not sel assets to pay off its debts.
The debt-to-asset ratio (or leverage ratio) is the quotient of total debt to total assets, which
indicates the share of a household’s assets that are borrowed. Lenders usual y use this ratio to
determine if the household has the ability to meet debt obligations in case of income losses (e.g.,
unemployment) or unexpected increase in expenses (e.g., emergencies and medical bil s).
General y, the lower the ratio, the greater the capability of the household to manage debt
payments. The household can have a higher debt-to-asset ratio because it has relatively higher
debt, lower asset values, or both. For example, households with large amount of mortgage debts
may have moderate debt-to-asset ratios because a house, while a debt, is also usual y the largest
type of asset for households. A household that does not own a home may have a large debt-to-
asset ratio for a smal amount of debt due to a lower asset level.
This report uses two measures regarding the debt-to-asset ratio: (1) the median level among aged
households with debt and (2) the share of aged households with debt who had a debt-to-asset ratio
greater than 80%. The 80% leverage level is sometimes used by financial institutions to
determine if a household qualifies for favorable mortgage interest rates.16 In 2019, the median
debt-to-asset ratio was 12.8% for aged households with any debt, and about 7.3% of those aged
households had a debt-to-asset ratio greater than 80%.
Debt burden can also be calculated by comparing required debt payments to the income available
to make those payments—the debt-payment-to-income ratio. The ratio can measure the effects of
interest rate changes and loan sizes on a household's liquidity (e.g., cash available for
consumption). The lower the ratio, the greater the availability of household funds to cover the
debt payment as wel as other household needs and the lower the risk the household wil be
unable to cover its debt payments. A household can have a higher debt-payment-to-income ratio
because it has relatively higher debt payments, lower income, or both. Households that have
limited income could have a higher debt-payment-to-income ratio with even a smal amount of
debt.
This report uses two measures related to the debt-payment-to-income ratio: (1) the median debt-
payment-to-income ratio among aged households with debt and (2) the share of aged households
with debt that had a debt-payment-to-income ratio greater than 40%. Financial institutions often
use the 40% debt-payment-to-income ratio to make decisions on mortgage loan approval
(meaning that households with a ratio of less than 40% are more likely to be approved for
mortgage loans as less of their income is required to make debt payments). In 2019, the median
debt-payment-to-income ratio was 13.7% among aged households with debt, and about 9.6% of

15 T he median debt lies at the middle of the debt distribution. Half of households have higher debt, and half have lower
debt. T he average debt is generally higher than the median debt because a relatively small percentage of households
have very high amounts of debt. T he median is therefore widely considered to be a more accurate measure of average
debt.
16 For more information, see CRS Report R42995, An Overview of the Housing Finance System in the United States.
Congressional Research Service
3

link to page 9 link to page 10 Demographic and Socioeconomic Characteristics of Older Households with Debt: 2019

those households had required debt payments accounting for more than 40% of income available
to make those payments.
Delinquent payments may also suggest trouble meeting debt obligations. In 2019, about 2.5% of
aged households with debt had debt payments past due 60 days or more.
Historical Trends in Debt Among Aged Households
Table 1 displays debt measures for aged households in 1992, 2001, 2010 and 2019 (or every nine
years over the past three decades). The share of aged households that had any debt general y
increased over time, while the median debt amount for aged households with debt peaked in
2010, the year after the recession from December 2007 to June 2009. Debt ratios also reached
their highest levels in 2010, most likely resulting from the negative effect of the 2007-2009
recession on household finances. While these debt ratios general y decreased from 2010 to 2019,
most of them appeared to be higher in 2019 than the levels in 1992 or 2001.
Table 1. Debt Measures for Aged Households in Selected Years, 1992-2019

1992
2001
2010
2019
Share of aged households with debt
43.0%
43.2%
52.3%
62.1%
Median debt of aged households with debt (in
2019 dol ars)
$7,294
$15,887
$46,894
$34,000
Share of aged households with negative net
2.7%
3.9%
5.4%
4.8%
worth
Debt-to-asset ratio among aged households with
debt

Median ratio
5.3%
7.9%
16.0%
12.8%
Share with ratio greater than 80%
3.6%
5.0%
9.1%
7.3%
Debt-payment-to-income ratio among aged
households with debt

Median ratio
9.2%
12.0%
15.8%
13.7%
Share with ratio greater than 40%
9.3%
14.6%
12.0%
9.6%
Share of aged households with debt payments
1.3%
1.3%
5.0%
2.5%
past due 60 days or more
Source: CRS analysis of the Survey of Consumer Finances in 1992, 2001, 2010, and 2019.
Notes: Aged households are those headed by individuals aged 65 and older. Negative net worth indicates that a
household has more debt than assets. Debt-to-asset ratio is the quotient of total debt to total assets. Debt-
payment-to-income ratio is the quotient of required debt payments to the income available to make those
payments.
Comparing Aged Households with Younger Households
Table 2 displays various debt measures and their changes from 1992 to 2019 for two age
groups—households whose heads were aged 45-64 (younger households) and those aged 65 and
older (aged households). Aged households general y held less debt and had less debt burden than
did younger households. However, aged households appeared to have a larger growth in debt than
did younger households from 1992 to 2019.
Aged households had relatively larger growth in the share of debt holding and the median debt
than younger households did. From 1992 to 2019, the share of aged households who had any debt
Congressional Research Service
4

Demographic and Socioeconomic Characteristics of Older Households with Debt: 2019

increased by 19.1 percentage points, compared with 2.7 percentage points for younger
households. The median debt among aged households with debt increased by 366.1%, compared
with 95.8% for younger households.
From 1992 to 2019, the share of aged households with debt that had negative net worth increased
2.1 percentage points, while their median debt-to-asset ratio and the share with the ratio greater
than 80% grew 7.5 and 3.7 percentage points, respectively. The increase in those relative debt
measures appeared to be at a similar level as younger households. This change implies that the
growth in debt slightly outpaced the growth in assets for many younger and aged households
from 1992 to 2019.
From 1992 to 2019, the median debt-payment-to-income ratio and delinquency rate (i.e., share of
households with debt payment past due 60 days or more) for aged households increased 4.5 and
1.2 percentage points, respectively, compared with almost no change for younger households.
Table 2. Changes in Debt Measures from 1992 to 2019, by Age of Household Heads
Percentage change is labeled in % and percentage points change in pp.
Household Heads Aged 45-64
Household Heads Aged 65 and

Older
Change
Change
1992-
1992-

1992
2019
2019
1992
2019
2019
Share of households with debt
78.6%
81.3%
2.7pp
43.0%
62.1%
19.1pp
Median debt of households
with debt (in 2019 dol ars)
$43,012
$84,200
95.8%
$7,294
$34,000
366.1%
Share of households with
negative net worth
4.5%
8.3%
3.7pp
2.7%
4.8%
2.1pp
Debt-to-asset ratio among
households with debt

Median ratio
19.3%
26.1%
6.8pp
5.3%
12.8%
7.5pp
Share with ratio greater
than 80%
7.5%
12.3%
4.8pp
3.6%
7.3%
3.7pp
Debt-payment-to-income
ratio among households with
debt

Median ratio
15.6%
15.8%
0.2pp
9.2%
13.7%
4.5pp
Share with ratio greater
than 40%
12.3%
9.9%
-2.4pp
9.3%
9.6%
0.3pp
Share of households with debt
payments past due 60 days or
more
5.1%
5.6%
0.4pp
1.3%
2.5%
1.2pp
Source: CRS analysis of the Survey of Consumer Finances in 1992 and 2019.
Notes: Negative net worth indicates that a household has more debt than assets. Debt-to-asset ratio is the
quotient of total debt to total assets. Debt-payment-to-income ratio is the quotient of required debt payments
to the income available to make those payments.
Congressional Research Service
5

link to page 11 link to page 13 link to page 13 Demographic and Socioeconomic Characteristics of Older Households with Debt: 2019

2019 Household Debt for Aged Households, by
Demographic and Socioeconomic Characteristics
This section describes debt among aged households in 2019 and how their debt holdings, net
worth, and other debt measures differ by demographic and socioeconomic characteristics,
including age, race/ethnicity, education, marital status, home ownership, and household income or
asset distributions.
Table 3 displays debt among aged households by demographic and socioeconomic characteristics
in 2019, including the prevalence of debt, median and average amount of debt, and the share of
aged households with debt that had negative net worth. Table 4 shows debt ratios for aged
households in 2019 along these same demographic and socioeconomic lines, including the debt-
to-asset ratio, the debt-payment-to-income ratio, and the delinquency rate. Debt holdings and debt
burden among older households general y vary by demographic and socioeconomic
characteristics. These statistics show that while debt may not be a large concern for aged
households overal , debt may be problematic for certain subgroups (discussions shown in the
sections after Table 4).
Table 3. Debt Holding for Aged Households, by Demographic and Socioeconomic
Characteristics, 2019
The highest value of each debt measure in each category is in bold.

Among Households with Debt
Share of
Share with
Households
Negative Net

with Debt
Median
Average
Worth
Total
62.1%
$34,000
$98,959
4.8%
Age
Age 65-69
69.6%
31,100
100,948
5.6%
Age 70-74
70.4%
42,100
110,430
4.6%
Age 75-79
57.2%
41,100
86,795
4.3%
Age 80 and older
44.8%
22,000
88,024
4.1%
Race/Ethnicity
White (non-Hispanic)
62.0%
40,000
105,917
3.1%
Black/African American
65.8%
14,900
49,989
14.1%
Hispanic or Latino
56.7%
40,000
70,436
9.7%
Other
55.8%
182,000
184,449
0.0%
Education
No high school diploma
49.7%
10,000
30,368
5.0%
High school diploma
57.1%
16,250
51,054
7.1%
Some col ege or associate
degrees
69.8%
42,000
80,311
5.3%
Bachelor degree and
higher
64.3%
71,000
159,715
3.1%
Congressional Research Service
6

Demographic and Socioeconomic Characteristics of Older Households with Debt: 2019

Among Households with Debt
Share of
Share with
Households
Negative Net

with Debt
Median
Average
Worth
Marital Status
Married
68.1%
57,480
133,606
1.4%
Divorced or separated
63.5%
18,000
68,338
9.7%
Widowed
52.6%
17,000
49,812
5.8%
Never married
48.0%
8,800
50,588
17.0%
Marital and Retirement Status
Married and both retired
65.1%
49,200
111,667
1.4%
Married and one retired
65.4%
61,500
133,886
1.2%
Married and neither
retired
85.7%
102,000
200,552
1.9%
Single and retired
56.2%
16,420
52,066
8.2%
Single and not retired
56.1%
15,000
85,306
11.6%
Home Ownership
Own a house
65.0%
50,000
115,433
0.7%
Not own a house
50.5%
5,800
13,871
26.0%
Household Income Quintile
First
43.9%
7,000
49,952
11.7%
Second
61.7%
14,000
39,257
11.9%
Third
63.9%
30,000
61,267
1.8%
Fourth
73.1%
52,000
93,477
1.6%
Fifth
67.8%
124,000
227,263
0.0%
Household Asset Quintile
First
53.1%
5,830
12,068
26.0%
Second
66.6%
17,900
37,282
0.8%
Third
67.1%
50,090
81,913
0.8%
Fourth
62.4%
77,900
119,829
0.0%
Fifth
61.2%
119,000
239,027
0.0%
Source: CRS analysis of the 2019 Survey of Consumer of Finances.
Notes: Aged households are those headed by individuals at or over 65 years old. The SCF's question about race
or ethnicity is asked only of the designated respondent. In 79% of sampled households, the designated
respondent was the head of household. For simplicity, households in this report wil be referred t o as White
(non-Hispanic) households, Black/African American households, Hispanic or Latino households, and “other”
households, though the race/ethnicity designation in the SCF refers specifical y to the household respondent’s
own identification. “Other” includes respondents who indicated that they identified as Asian, American
Indian/Alaska Native, Native Hawai an/Pacific Islander, or others. The SCF combined these categories in the
public dataset. The SCF al ows respondents to indicate more than one race or ethnicity. CRS used the first
response to analyze data. Marital status refers to a household’s status at the time of the survey. A household is
considered to own a house if the household owns a ranch, farm, mobile home, house, condo, co-op, and or
other type of home. Income is measured in 2018, including earnings, interest, dividend, business income, rent
Congressional Research Service
7

Demographic and Socioeconomic Characteristics of Older Households with Debt: 2019

income, investment income, Social Security, pension and annuity payments, withdrawals from Individual
Retirement Accounts (IRAs) and tax-advantaged retirement savings accounts (e.g., 401[k]), and other
government transfers. Income is divided into household income quintiles. Each quintile represents approximately
20% of the aged households. The household income levels that divide the quintiles are $22,39 9, $37,670,
$59,051, and $103,830. Assets include checking and saving accounts, money market deposit and similar accounts,
certificates of deposit, al types of mutual funds, stocks and bonds, IRAs and 401(k)-type accounts, the cash value
of life insurance, other managed assets, the value of vehicles, the value of real estate, business interests, and
other miscel aneous assets. The household asset levels that divide the quintiles are $71,000, $227,570, $431,100,
and $990,800.
Table 4. Debt Ratios for Aged Households with Debt, by Demographic and
Socioeconomic Characteristics, 2019
The highest value of each debt ratio in each category is in bold.
Percentage of
Percentage of
Aged
Percentage of
Aged
Households
Aged
Households
with Debt-
Households
with Debt-to-
Payment-to-
with Debt
Asset Ratio
Median Debt-
Income Ratio
Payments
Median Debt-
Greater Than
Payment-to-
Greater Than
Past Due 60

to-Asset Ratio
80%
Income Ratio
40%
Days or More
Total
12.8%
7.3%
13.7%
9.6%
2.5%
Age
Age 65-69
13.5%
8.0%
12.5%
9.5%
2.2%
Age 70-74
13.9%
7.4%
14.4%
9.7%
2.8%
Age 75-79
13.5%
7.2%
14.2%
7.9%
0.0%
Age 80 and
older
8.6%
5.7%
11.2%
12.4%
6.3%
Race/Ethnicity
White (non-
Hispanic)
11.0%
15.8%
12.8%
8.2%
1.5%
Black/African
American
26.4%
32.6%
15.4%
17.2%
6.4%
Hispanic or
Latino
28.0%
20.8%
20.6%
17.3%
10.4%
Other
22.5%
0.0%
18.7%
1.1%
0.0%
Education
No high school
diploma
13.8%
8.9%
14.7%
8.6%
2.8%
High school
diploma
15.1%
11.2%
12.9%
11.0%
3.1%
Some col ege or
associate
degrees
15.3%
7.6%
14.4%
11.7%
2.4%
Bachelor degree
and higher
10.1%
4.5%
12.2%
7.6%
2.2%
Marital Status
Married
11.8%
3.2%
13.7%
8.7%
2.7%
Congressional Research Service
8

Demographic and Socioeconomic Characteristics of Older Households with Debt: 2019

Percentage of
Percentage of
Aged
Percentage of
Aged
Households
Aged
Households
with Debt-
Households
with Debt-to-
Payment-to-
with Debt
Asset Ratio
Median Debt-
Income Ratio
Payments
Median Debt-
Greater Than
Payment-to-
Greater Than
Past Due 60

to-Asset Ratio
80%
Income Ratio
40%
Days or More
Divorced or
separated
16.4%
14.6%
12.3%
10.7%
2.4%
Widowed
13.8%
8.2%
14.5%
10.7%
2.9%
Never married
9.5%
19.2%
10.0%
10.6%
0.0%
Marital and Retirement Status
Married and
both retired
10.8%
3.5%
14.2%
8.7%
1.6%
Married and one
retired
16.2%
2.5%
14.4%
10.8%
5.2%
Married and
neither retired
14.3%
3.3%
12.2%
5.7%
1.9%
Single and
retired
13.8%
11.6%
14.6%
12.4%
2.1%
Single and not
retired
18.8%
15.6%
10.9%
2.9%
3.7%
Home Ownership
Own a house
11.2%
2.4%
14.9%
10.3%
1.8%
Not own a
house
35.3%
32.9%
6.8%
6.3%
6.4%
Household Income Quintile
First
22.2%
16.0%
15.7%
23.4%
3.7%
Second
14.1%
13.9%
14.9%
13.5%
2.1%
Third
15.1%
6.3%
14.7%
9.3%
5.0%
Fourth
11.4%
3.0%
13.6%
4.9%
2.3%
Fifth
8.8%
1.4%
10.1%
2.6%
0.0%
Household Asset Quintile
First
41.1%
33.9%
9.4%
6.4%
6.7%
Second
16.0%
3.6%
17.1%
10.8%
0.8%
Third
14.9%
3.5%
14.9%
10.3%
2.8%
Fourth
12.1%
0.1%
16.7%
11.9%
2.5%
Fifth
4.7%
0.0%
9.3%
8.1%
0.5%
Source: CRS analysis of the 2019 Survey of Consumer of Finances.
Notes: Aged households are those headed by individuals at or over 65 years old. The SCF's question about race
or ethnicity is asked only of the designated respondent. In 79% of sampled households, the designated
respondent was the head of household. For simplicity, households in this report wil be referred to as White
(non-Hispanic) households, Black/African American households, Hispanic or Latino households, and “other”
households, though the race/ethnicity designation in the SCF refers specifical y to the household respondent’s
Congressional Research Service
9

Demographic and Socioeconomic Characteristics of Older Households with Debt: 2019

own identification. “Other” includes respondents who indicated that they identified as Asian, American
Indian/Alaska Native, Native Hawai an/Pacific Islander, or others. The SCF combined these categories in the
public dataset. The SCF al ows respondents to indicate more than one race or ethnicity. CRS used the first
response to analyze data. Marital status refers to a household’s status at the time of the survey. A household is
considered to own a house if the household owns a ranch, farm, mobile home, house, condo, co-op, and or
other type of home. Income is measured in 2018, including earnings, interest, dividend, business income, ren t
income, investment income, Social Security, pension and annuity payments, withdrawals from Individual
Retirement Accounts (IRAs) and tax-advantaged retirement savings accounts (e.g., 401[k]), and other
government transfers. Income is divided into household income quintiles. Each quintile represents approximately
20% of the aged households. The household income levels that divide the quintiles are $22,399, $37,670,
$59,051, and $103,830. Assets include checking and saving accounts, money market deposit and similar accounts,
certificates of deposit, al types of mutual funds, stocks and bonds, IRAs and 401(k)-type accounts, the cash value
of life insurance, other managed assets, the value of vehicles, the value of real estate, business interests, and
other miscel aneous assets. The household asset levels that divide the quintiles are $71,000, $227,570, $431,100,
and $990,800.
Household Debt by Age Groups17
Among aged households, relatively younger households were general y more likely to hold debt
than older households in 2019.
 For households aged 65-69, about 69.6% held debt, and for households aged 70-
74, 70.4% held debt. The percentage of households with debt declines to 57.2%
for households aged 75-79 and 44.8% for households aged 80 and older.
 The median debt for aged households with debt was also higher among aged
households with relatively younger heads, with $31,100, $42,100, and $41,100
for those in the age groups 65-69, 70-74, and 75-79, respectively, compared with
$22,000 for households headed by those at or over 80 years old.
Additional y, a smal share (5.6%) of households with debt aged 65-69 had negative net worth in
2019, slightly higher than that for households aged 70 and older. This data shows that negative
net worth persists among households in al age groups.
In 2019, households aged 80 and older had the lowest debt-to-asset ratio compared with other
older households, including a lower median debt-to-asset ratio and a smal er share of households
with a debt-to-asset ratio greater than 80%. However, households with debt whose heads were
aged 80 and older were also more likely to have a debt-payment-to-income ratio greater than 40%
and were more likely to be delinquent. Some households in the oldest age group may have more
trouble servicing their debt because they are more likely to have lower or no earnings (as they
phase out of the labor force), exhaust existing retirement resources or rely on fixed income such
as Social Security or pension payments, and incur higher medical expenses. For example, in
2019, about 11.8% of households aged 80 and older had some wage income, compared to 35.6%
of households aged 65-79.18 In the same year, about 35% of households aged 80 and older had
some retirement assets, compared to 49% of households aged 65-79.19 In addition, the average

17 Age refers to the age of the head of the household. In 2019, about 31.6% of older households were headed by those
aged 65-69, 26.0% by those aged 70-74, 22.5% by those aged 75-79, and 19.9% by those aged 80 and older.
18 In 2019, the median wage income among those with any wages was $15,272 for households headed by those aged 80
and older, compared with $33,598 for those aged 65-79. Data are based on CRS analysis of the 2019 SCF.
19 In 2019, the median retirement asset level among households with any assets was $62,000 for households headed by
those aged 80 and older, compared with $146,000 for households headed by those aged 65-79. Data are based on CRS
analysis of the 2019 SCF. For more information, see Federal Reserve, “ Codebook for 2019 Survey of Consumer
Finances,” https://www.federalreserve.gov/econres/files/codebk2019.txt ; and Federal Reserve, “ Macro-Variable
Definitions,” https://www.federalreserve.gov/econres/files/bulletin.macro.txt . T he relatively lower percentage of
Congressional Research Service
10

Demographic and Socioeconomic Characteristics of Older Households with Debt: 2019

amount of personal health care spending was $32,903 for individuals aged 85 and older in 2014,
compared with $16,977 for those aged 65-84.20
Household Debt by Race/Ethnicity21
Black/African American aged households were more likely to hold debt than were households
that identified as another race or ethnicity in 2019 but had the lowest median debt across
race/ethnic groups.
 About 65.8% of Black/African American aged households had any debt,
compared with 62.0% or less among aged households that identified as other
races.
 Black/African American aged households had the lowest median debt among al
races, at $14,900 in 2019, compared with $40,000 or more for aged households
that identified as other races.
As discussed later in this report, the relatively lower median debt among Black/African American
households might be because those households were least likely to hold mortgages. Mortgages
are typical y a larger source of debt than other types of debt and are also considered a relatively
safe type of debt to hold because they are secured by a home, which general y retains or increases
its value over time.
Aged Black/African American households with debt were more likely to have negative net worth
in 2019. Among aged Black/African American households, 14.1% had negative net worth,
compared with 9.7% for Hispanic or Latino, 3.1% for White (non-Hispanic) and about zero for
other.
The debt-to-asset ratios for aged households that identified as Black/African American or
Hispanic or Latino were higher than those for White (non-Hispanic) aged households and other in
2019.
 Among households with debt, the median debt-to-asset ratio was 26.4% for
Black/African American households and 28.0% for Hispanic or Latino
households, compared with 11.0% for White (non-Hispanic) households and
22.5% for other.

households in the age group 80 and older who had retirement assets in 2019 may be due to the fact that the head of
household who turned 80 or older in 2019 was born in 1939 and earlier and turned 50 before 1989. T hose households
were more likely to have defined benefit pensions than defined contribution plans due to the fact that the latter were not
widely available in those years. For more information, see Sebastian Devlin -Foltz, Alice M. Henriques, and John
Sabelhaus, The Evolution of Retirem ent Wealth, Board of Governors of the Federal Reserve System, 2015,
https://www.federalreserve.gov/econresdata/feds/2015/files/2015009pap.pdf.
20 See Department of Health and Human Services, Centers for Medicare and Medicaid Services, NHE Fact Sheet, 2019,
T able 7, https://www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-T rends-and-Reports/
NationalHealthExpendData/NHE-Fact -Sheet .
21 T he SCF's question about race or ethnicity is asked only of the designated respondent. In 79% of sampled
households, the designated respondent was the head of household. For simplicity, households in this report will be
referred to as White (non-Hispanic) households, Black/African American households, Hispanic or Latino households,
and “other” households, though the race/ethnicity designation in the SCF refers specifically to the household
respondent’s own identification. “Other” includes respondents who indicated that they identified as Asian, American
Indian/Alaska Native, Native Hawaiian/Pacific Islander, or others. T he SCF combined these categories in the public
dataset. T he SCF allows respondents to indicate more than one race or ethnicity. CRS used the first response to analyze
data. In 2019, about 79.4% of older households identified as White (non -Hispanic), 12.4% as Black/African American,
4.9% as Hispanic or Latino, and 3.0% as other.
Congressional Research Service
11

link to page 13 Demographic and Socioeconomic Characteristics of Older Households with Debt: 2019

 The share of aged households with debt accounting for more than 80% of assets
was 32.6% for Black/African American households, 20.8% for Hispanic or
Latino households, 15.8% for White (non-Hispanic) households, and zero for
other.
The proportion of older households with relatively high debt-payment-to-income ratios and
delinquency rates was also larger for Black/African American households and Hispanic or Latino
households than those for the White (non-Hispanic) households and other households in 2019.
 The share of older households with debt that had debt payments accounting for
more than 40% of income was about 17% for Black/African Americans and
Hispanics or Latino households, compared with 8.2% for White (non-Hispanic)
households and 1.1% for other households.
 The delinquency rate was 6.4% for Black/African American households and
10.4% for Hispanic or Latino households, compared with 1.5% for White (non-
Hispanic) households and zero for other households.
Household Debt by Educational Attainment22
In 2019, aged households with college degrees or some college were more likely to hold debt, and
their median debt was higher than those with just a high school diploma or those who did not
finish high school.
 About 69.8% of aged households with some college or associate degrees and
64.3% of those with bachelor degrees or higher had debts, compared with 49.7%
for those with no high school diploma and 57.1% for those who just completed
high school.
 Median debt for older households with debt was also higher for those with more
formal education ($42,000 for those with some college or associate degrees and
$71,000 for those with bachelor degrees or higher) compared to those with less
educational attainment ($10,000 for those with no high school diploma and
$16,250 for those with only high school diplomas).
However, the share of aged households that had negative net worth in 2019 was lowest among
those with bachelor degrees or higher. About 3.1% of aged households whose heads had bachelor
degrees or higher had negative net worth, compared with 5.0% for those without high school
diplomas, 7.1% for those with only high school diplomas, and 5.3% for those with some college
or associate degrees.
Aged households whose heads had bachelor degrees and higher had lower debt-to-asset ratio and
lower debt-payment-to-income ratio than other aged households (see Table 4).

22 Household educational attainment refers to the educational attainment of the head of the household. In 2019, about
13.5% of older households had heads who did not earn high school diplomas, 23.6% had heads with high school
diplomas, 26.0% had heads with some college education or associate degrees, and 36.9% had heads with bachelor
degrees or higher.
Congressional Research Service
12

Demographic and Socioeconomic Characteristics of Older Households with Debt: 2019

Household Debt by Marital Status23
Married aged couples were more likely to have debt, and carried higher median debt levels, than
aged households with other marital statuses (e.g., divorced, widowed and never married) in 2019.
 About 68.1% of married aged households held some debt, compared to 63.5% for
divorced or separated aged households, 52.6% for widowed households, and
48.0% for never-married households.
 The median debt for married aged households with debt ($57,480) was also
higher than other households ($18,000 for divorced or separated, $17,000 for
widowed, and $8,800 for never married).
As discussed later in this report, married aged couples were more likely to hold mortgages and
auto debt than single aged individuals.
Despite higher debt levels, married aged households were least likely to have a negative net worth
compared to other marital statuses in 2019. About 1.4% of married aged households had negative
net worth, compared with 9.7% among those divorced or separated, 5.8% among those widowed,
and 17.0% among those never married.
The median debt-to-asset ratio for married households was close to the median level for al
households, and the percentages of married households with (1) debt-payment-to-income ratio
greater than 40% and (2) debt payments past due 60 days or more were close to percentages for
al households, respectively. Married households were also less likely than others to have a
leverage ratio greater than 80% or have debt payments accounting for more than 40% of
household income. In contrast, never-married aged households had a relatively lower median
debt-to-asset ratio, debt-payment-to-income ratio, and delinquency rate than households in other
marital status groups. However, never-married households were more likely to have leverage ratio
greater than 80%.
Household Debt by Marital and Retirement Status
In 2019, almost 70% of aged households were retired at the time of the survey, including married
couples where both the head of the household and the spouse were retired and single retired
individuals. The non-retired aged households include married couples with one person retired,
married couples with neither member retired, and non-retired single individuals.24
As discussed earlier, in 2019, married aged couples were more likely to have debt and had a
higher median debt than did single individuals aged 65 and older. Among married aged couples,
85.7% with both individuals stil working held debt, compared with roughly 65% for married
couples with one person working or both retired. The median debt for married working aged
couples was $102,000, compared with $61,500 for married aged couples with one person working
and $49,200 for married aged couples with both members retired. These numbers are consistent
with the findings in one recent study that showed that older adults with debt were more likely to
work and less likely to be retired and on average expect to work longer than do those with less

23 In 2019, almost half of households headed by those aged 65 and older were married at the time of the survey,
compared to 19.6% that were divorced or separated, 24.2% that were widowed, and 6.8% that had never married.
24 In 2019, about 28.4% of aged households were married couples with both individuals retired, 14.0% were married
couples with one individual retired, 7.0% were married couples with neither individual retired, 41.5% were single
retired individuals, and 9.1% were non-retired single individuals.
Congressional Research Service
13

Demographic and Socioeconomic Characteristics of Older Households with Debt: 2019

debt.25 However, there is a different pattern for aged, single individuals. The SCF data showed
that, in 2019, the share of single working aged individuals who had some debt (56.1%) was
similar to that for single retired aged individuals (56.2%).
Although aged single individuals were less likely to have debt, they were more likely to have
negative net worth. In 2019, among single aged individuals, about 11.6% of non-retired and 8.2%
of retired individuals had a negative net worth, compared with less than 2% among those married
aged households.
In 2019, the median debt-to-asset ratio was general y higher among aged households who were
stil working at the time of the survey.
 The median leverage ratio was 16.2% for married aged couples with one person
stil working and 14.3% for married aged couples with both people stil working,
compared with 10.8% for married aged couples with both people retired.
 Similarly, the median leverage ratio was 18.8% for working single individuals,
compared with 13.8% for retired single persons.
 The share of aged single individuals who had a leverage ratio greater than 80%
was also higher among those stil working (15.6%) than that for those retired
(11.6%).
In contrast, the debt-payment-to-income ratio was general y higher among aged households with
both people retired.
 The median debt-payment-to-income ratio was about 14% for aged married
couples with at least one person retired, compared with 12.2% for aged married
couples with both people stil working.
 Similarly, the median debt-payment-to-income ratio was 14.6% for retired single
individuals and 10.9% for those stil working.
 The share of aged households who had a debt-payment-to-income ratio greater
than 40% was also higher for aged households with retired members than for
those with both people working.
These statistics are consistent with the idea that income in retirement is often lower than income
while working.26
Household Debt by Home Ownership
In 2019, about 80.1% of aged households owned homes, which included ranches, farms, mobile
homes, houses, condos, co-ops, and other types of homes.
Aged homeowners were more likely to hold debt than were aged households who did not own
homes in 2019.
 About 65.0% of aged homeowners had debt, compared with 50.5% among those
who did not own homes.

25 See Barbara A. Butrica and Nadia S Karamcheva, Is Rising Household Debt Affecting Retirement Decisions?,
Wharton Pension Research Council, Working Papers 536, 2019, https://repository.upenn.edu/prc_papers/536.
26 Patrick J. Purcell, “Income Replacement Ratios in the Health and Retirement Study ,” Social Security Bulletin, vol.
72, no. 3 (2012).
Congressional Research Service
14

link to page 11 Demographic and Socioeconomic Characteristics of Older Households with Debt: 2019

 The median debt among aged homeowners with debt was $50,000, which was
substantial y larger than the median debt for aged debtors who did not own
homes ($5,800).
As discussed in the following section of this report, mortgages on homes that were the
household’s primary residence were the largest type of debt among those aged homeowners.
Aged debtors who did not own homes were more likely to have negative net worth. In 2019,
about 26.0% of aged households with debt who did not own homes had negative net worth,
compared with less than 1% among aged homeowners. This may be because a house is usual y
the largest asset for a homeowner.
In 2019, aged homeowners tended to have relatively lower debt-to-asset ratios, mainly because
their houses were usual y large assets for the households. In contrast, they tended to have
relatively higher debt-payment-to-income ratios, partly because their mortgage payments
accounted for a larger proportion of income. However, aged homeowners were less likely to have
debt payments past due 60 days or more.
Household Debt by Household Income Quintiles
Income for aged households can include earnings, Social Security, pension and annuity payments,
withdrawals from Individual Retirement Accounts (IRAs) and tax-advantaged retirement savings
accounts (e.g., 401(k) plans), interest, dividends, business income, rent income, investment
income, and government transfers.27
Table 3 displays the share of aged households with debt and the share of those households that
had negative net worth by household income quintiles in 2019. Each quintile represents
approximately 20% of the aged household population. The first quintile depicts the 20% of the
aged household population with the least household income, and the fifth quintile depicts the 20%
of aged households with the most income.
 Aged households in the lowest income quintile were least likely to hold debt
(with a likelihood of 43.9%), while aged households in the top two income
quintiles were most likely to have debt (with a likelihood of 67.8% in the top
quintile and 73.1% in the second highest quintile).
 The median debt for aged households in the lowest household income quintile
($7,000) was much lower than for those in the top two household income
quintiles ($124,000 for the top quintile and $52,000 for the second highest
quintile).
However, aged households with negative net worth were mainly concentrated in the lowest two
household income quintiles. Nearly 12% of aged households in the two lowest household income
quintiles had negative net worth in 2019.
Aged households with higher household incomes tended to have a lower median debt-payment-
to-income ratio and were less likely to have such a ratio greater than 40% than were those with
lower household incomes. Although aged households with higher incomes may not necessarily
have higher assets, household income and assets were highly positively correlated with each
other. General y, aged household with lower income tended to have a higher median debt-to-asset
ratio and were more likely to have debt accounting for more than 80% of the household’s assets.

27 For definition of household income, see Board of Governors of the Federal Reserve System, “Survey of Consumer
Finance (SCF).”
Congressional Research Service
15

link to page 25 link to page 21 Demographic and Socioeconomic Characteristics of Older Households with Debt: 2019

Household Debt by Household Asset Quintiles
Assets for aged households can include checking and saving accounts, money market deposit and
similar accounts, certificates of deposit, al types of mutual funds, stocks and bonds, IRAs and
401(k)-type accounts, the cash value of life insurance, other managed assets, the value of
vehicles, the value of real estate, business interests, and other miscel aneous assets.28 The
expected value of Social Security and defined benefit pensions are not included in this asset
measure.
Aged households in the lowest household asset quintile were the least likely to hold debt, and
their median debt was the lowest compared with other aged households. While aged households
in the second and third household asset quintiles were more likely to have debt than were aged
households at other asset levels, the median debt was highest among those in the highest
household asset quintile. As discussed in the following section (see Table 7), in 2019, aged
households in the highest asset quintile were most likely to have mortgage debt on a second
property (other than their primary residential home), which might explain some aspects of the
relatively high median debt for those aged households.
In 2019, about 26% of aged households with debt in the lowest household asset quintile had
negative net worth (about 5% of aged households in total).
Aged households with debt that were in the lowest household asset quintile had the highest debt-
to-asset ratio compared with other aged households with debt, with a median ratio of 41.1% and
more than one-third of them having more than 80% of assets borrowed. About 6.7% of those aged
households in the lowest 20% of the household asset distribution had debt payments past due 60
days or more. Those households, however, did not show a high median debt-payment-to-income
ratio level.
Types of Debt for Aged Households in 2019
Household debt includes primary residence mortgages, other residential debt such as mortgages
on a second home, auto loans, student loans, credit card balances, and other debt products.29 In
2019, mortgage debt for a household’s primary residence was the largest type of debt among aged
households (in terms of total debt amount), and credit card debt was the most prevalent type of
debt (see Table 5).
Table 5. Share of Aged Households by Types of Debt and Median and Average Debt
for Each Type of Debt, 2019

Aged Households with Debt by Type of Debt
Share of Aged
Households with Debt,
Types of Debt
by Type of Debt
Median Debt
Average Debt
Any debt
62.1%
$34,000
$98,959

28 For definition of household income, see Board of Governors of the Federal Reserve System, “Survey of Consumer
Finance (SCF).”
29 Other debt products may include loans for household appliances, furniture, hobby or recreational equipment, medical
bills, a business or investment, or loans from friends or relatives. For more information on consumer finance, see CRS
Report R45813, An Overview of Consum er Finance and Policy Issues.
Congressional Research Service
16

link to page 21 link to page 22 Demographic and Socioeconomic Characteristics of Older Households with Debt: 2019

Aged Households with Debt by Type of Debt
Share of Aged
Households with Debt,
Types of Debt
by Type of Debt
Median Debt
Average Debt
Primary residence
mortgage
33.4%
86,000
132,184
Other residential
mortgage
3.7%
110,000
184,626
Auto loans
23.9%
12,000
16,914
Student loans
3.2%
14,000
35,019
Credit card debt
35.6%
2,850
7,382
Other debt
11.2%
4,600
22,952
Source: CRS analysis of the 2019 Survey of Consumer of Finances.
Notes: Aged households are those headed by individuals at or over 65 years of age. Other debts include lines of
credit, instal ment loans, loans against pensions or life insurance, margin loans, and miscel aneous debts.
A smal share of aged households with debt (4.8%) had negative net worth in 2019. Those aged
debtors were less likely to hold residential mortgage debt than were other aged households30 but
more likely to hold auto loans, student loans, credit card debts, and other debts (see Table 5 and
Table 6).31
Table 6. Share of Aged Households with Negative Net Worth by Types of Debt and
Median and Average Debt for Each Type of Debt, 2019

Aged Households with Negative Net Worth and

Each Type of Debt
Share of Aged
Households with
Negative Net Worth
Types of Debt
and Each Type of Debt
Median Debt
Average Debt
Any debt
100%
$10,550
$47,730
Primary residence
mortgage
12.1%
150,000
122,413
Other residential
mortgage
0.0%
0
0
Auto loans
30.6%
10,000
10,996
Student loans
29.3%
20,000
54,930
Credit card debt
62.2%
4,300
8,973
Other debt
39.2%
2,500
19,963
Source: The 2019 Survey of Consumer of Finances.
Notes: Aged households are those headed by individuals at or over 65 years of age. Other debts include lines of
credit, instal ment loans, loans against pensions or life insurance, margin loans, and miscel aneous debts.

30 Based on the data in 2019 SCF, about 87.9% of aged households that had negative net worth did not own homes in
the survey year.
31 In 2019, 4.8% of households with debt had negative net worth.
Congressional Research Service
17

link to page 21 link to page 25 Demographic and Socioeconomic Characteristics of Older Households with Debt: 2019

Mortgage Debt Secured by Residential Properties
Households hold mortgages on their primary residence and other residential properties, such as
second homes or rental properties. Mortgage debt among older adults increased substantial y over
the past several decades, mainly for primary residence homes. For example, the share of aged
households that held mortgage debt from primary residences increased from 14.3% in 1992 to
33.4% in 2019.32 In 2019, the median mortgage debt from a primary residence was $86,000, and
the average was $132,184 (see Table 5). However, a relatively smal share of aged households
had residential mortgage debts on other types of properties, increasing slightly from 2.1% in 1992
to 3.7% in 2019. The median and average amounts of residential mortgage debt for properties
other than the household’s primary residence were $110,000 and $184,626, respectively, in 2019.
Several factors may have contributed to the increase in mortgage debt among older households in
recent years. One factor is that recent cohorts tend to purchase higher priced homes with smal er
down payments, thus resulting in more debt in retirement.33 Another study finds that the increase
in homeownership could explain some of the rise in mortgage debt.34
Owning a house and holding mortgage debt may be financial y advantageous for some
households. One study shows that owning a home was general y financial y advantageous relative
to renting.35 In addition, research also shows that the increase in mortgage usage among older
adults did not result in an increase in delinquency.36 Others, however, argue that rising debt levels
may suggest potential y worsening outcomes for some households. For example, one study
reports that homeownership rates and mortgage usage among older adults have been increasing
faster than the increase in financial assets, suggesting that financial stability among retirees is
getting worse.37
The share of aged households with primary residential mortgages general y differ across
demographic and socioeconomic groups (see Table 7). For example, in 2019, relatively younger
aged households (e.g., heads of the household below 75 years old), aged households whose heads
identified as White (non-Hispanic), and those whose heads had some college or higher levels of
education were more likely to hold primary residential mortgages than their counterparts were.
Married couples, especial y those with both spouses currently working, were more likely to hold
primary residential mortgages than single-person households were. The likelihood of holding
primary residential debt was also relatively higher for aged households at the top of the household
income or asset distribution.
Similarly, the share of aged households that had mortgage debt for properties other than their
primary residence also differs across demographic and socioeconomic groups. For example, older
households whose heads were relatively young, identified as White (non-Hispanic) and other or

32 CRS analysis of the 1989 and 2019 SCF. Aged households that held reverse mortgages are included in the analysis.
In 2019, about 2.2% of aged households with debt had reverse mortgages as reported in the SCF. One study finds that
reverse mortgage borrowers are more likely to pay down existing debt. For more information about the reverse
mortgage, see Stephanie Moulton, Cazilia Loibl, and Donald Haurin, “ Reverse Mortgage Motivations and Outcomes:
Insights from Survey Data,” Cityscape, vol. 19, no. 1 (2017), pp.73-98.
33 See, for example, Lusardi, Mitchell, and Oggero, Debt and Financial Vulnerability on the Verge of Retirement.
34 See, for example, J. Michael Collins, Erik Hembre, and Carly Urban, Exploring the Rise of Mortgage Borrowing
Am ong Older Am ericans, Center for Retirement Research, Working Paper no. 2018-3, May 2018.
35 Laurie S. Goodman and Christopher Mayer, “Homeownership and the American Dream,” Journal of Economic
Perspectives, vol. 32, no. 1 (2018), pp. 31-58.
36 Collins, Hembre, and Urban, Exploring the Rise of Mortgage Borrowing Among Older Americans.
37 Christopher J. Mayer, “Housing, Mortgages, and Retirement,” in Evidence and Innovation in Housing Law and
Policy, ed. Lee Anne Fennell and Benjamin J. Keys (Cambridge University Press, 2017), pp. 203-230.
Congressional Research Service
18

link to page 22 link to page 25 link to page 21 link to page 25 Demographic and Socioeconomic Characteristics of Older Households with Debt: 2019

multiple races, and had bachelor’s degrees or higher levels of education and married households
with at least one working spouse were more likely to hold both mortgage debt on primary
residences and other properties than other households were. Aged households in the top of the
income or asset distribution were much more likely to hold mortgage debt on properties other
than their primary residences than others were, regardless of their likelihood of holding a
mortgage on a primary residence.
Auto Loans
In 2019, 23.9% of aged households had auto loans, rising from 10.4% in 1992. The median auto
loan amount among aged households with auto loans was $12,000 in 2019, and the average auto
loan amount was $16,914.
Rising auto loan debt among elderly households may have partly resulted from rising vehicle
costs and longer auto loan maturities.38
Some demographic and socioeconomic groups of aged households were more likely to hold auto
loans, such as relatively younger aged households, those that identified as Black/African
American and Hispanic or Latino, those that were married, those with relatively higher household
income, and those with negative net worth (see Table 6 and Table 7).
Student Loans
In 2019, about 3.2% of aged households had student loan debt, increasing from 1.1% in 1992.39 In
2019, the median student loan amount among aged households with student loans was $14,000,
while the average amount was $35,019 (see Table 5).
In a 2020 report, the Congressional Budget Office found that the amount of outstanding federal
student loan debt increased for al adults more than sevenfold, from $187 bil ion to $1.4 tril ion
(in 2017 dollars), between 1995 and 2017.40 The report suggests that student loans have grown
because the number of borrowers has increased, the average amount borrowed has increased, and
the rate at which the loans are repaid has slowed. Stakeholders have expressed concern that some
people may carry student loan debt into older ages, thus affecting the financial balance sheets of
older households. Additional y, some older Americans may take out student loans for their
children rather than themselves, which may affect their retirement security. The Government
Accountability Office found that, in 2016, aged households with student loans were significantly
more likely to have student loans for children than for themselves or their spouses.41 Unlike other
types of loans, student loans are usual y not discharged if a borrower declares bankruptcy, and
some Social Security benefits can be withheld to recover the student loan balance.42
Certain demographic and socioeconomic groups of aged households were significantly more
likely to hold student loans than others were (see Table 7). For example, about 8.3% of aged
households who were Black/African American had student loans in 2019, compared with less

38 CRS In Focus IF11192, The Automobile Lending Market and Policy Issues.
39 Despite this growth, in 2019, the share of older households that had student loan debt was still significantly lower
than the share of households headed by individuals aged 55 -64 (12.5%). Among those households whose head was 55 -
64 years old, the median student loan amount was $23,000, and the average amount was $38,368 in 2019.
40 Congressional Budget Office, The Volume and Repayment of Federal Student Loans: 1995 to 2017 , November 2020.
41 Government Accountability Office, Debt Increased for Older Americans over Time, but the Implications Vary by
Debt Type, GAO-21-170, April 2021.
42 See 31 U.S.C. §3716(c)(3)(A); 31 C.F.R. §285.4(e).
Congressional Research Service
19

link to page 21 link to page 22 link to page 21 link to page 25 link to page 22 Demographic and Socioeconomic Characteristics of Older Households with Debt: 2019

than 4% among other households. About 8.4% of aged married households with both spouses
working and 7.5% of single households whose heads were stil working had student loans,
compared with 1.7% for retired married couples and 1.8% for retired single person households. In
addition, about 29.3% of aged households with negative net worth held student loans, which was
substantial y more than other aged households. The median and average amounts for student loan
holders with negative net worth were $20,000 and $54,930, respectively, which was greater than
those for other aged households (see Table 5 and Table 6).
Credit Card Debt
In 2019, about 35.6% of aged households had credit card debt, rising from about 26.9% in 1992.
In 2019, the median balance was $2,850 among those with debt, and the average balance was
$7,382 (see Table 5).
Similar to other types of debt, relatively younger aged households (i.e., heads of the households
aged 65-74) were more likely to have credit card debt (see Table 7). About 44.9% of
Black/African American aged households had credit card balances in 2019, compared to less than
40% for households that identified as another race/ethnicity. Aged households in the top of the
household asset distribution were least likely to have credit card debt. Credit card debt was the
most common type of debt among aged households in 2019, but it was less common than
residential mortgage debt for certain demographic and socioeconomic groups, including White
(non-Hispanic) households, households with bachelor’s degrees or higher, married households,
homeowners, and households in the top two quintiles of the income or asset distribution.
Among households with negative net worth in 2019, about 62.2% had credit card debt. The
median and average credit card balance was $4,300 and $8,973, respectively (see Table 6).
Table 7. Share of Aged Households Holding Types of Debt, by Demographic and
Socioeconomic Characteristics, 2019
The highest share in each category is in bold.
Primary
Other
Residence
Residential
Student
Credit
Other

Mortgage
Mortgage
Auto Loans
Loans
Card Debt
Debt
Total
33.4%
3.7%
23.9%
3.2%
35.6%
11.2%
Age
65-69
36.5%
4.6%
27.1%
4.5%
39.9%
11.4%
70-74
39.0%
4.5%
27.7%
3.8%
42.7%
14.8%
75-79
32.4%
2.4%
23.5%
1.4%
32.9%
7.2%
80 and older
22.4%
2.8%
14.1%
2.3%
22.4%
10.8%
Race/Ethnicity
White, non-
Hispanic
34.9%
4.1%
23.5%
2.3%
34.0%
10.4%
Black/African
American
25.9%
1.4%
25.7%
8.3%
44.9%
13.0%
Hispanic or
Latino
28.4%
1.8%
26.9%
3.4%
35.0%
18.3%
Other
34.8%
5.6%
22.0%
3.7%
38.5%
14.8%
Congressional Research Service
20

Demographic and Socioeconomic Characteristics of Older Households with Debt: 2019

Primary
Other
Residence
Residential
Student
Credit
Other

Mortgage
Mortgage
Auto Loans
Loans
Card Debt
Debt
Second
34.9%
0.1%
22.2%
2.3%
41.3%
10.9%
Third
41.8%
3.1%
27.1%
4.2%
43.2%
9.0%
Fourth
46.6%
4.8%
27.9%
2.9%
36.0%
10.5%
Fifth
40.0%
10.7%
21.6%
2.9%
21.6%
9.6%
Source: The 2019 Survey of Consumer of Finances.
Notes: Aged households are those headed by individuals at or over 65 years old. Other debts include lines of
credit, instal ment loans, loans against pensions or life insurance, margin loans, and miscel aneous debts. Income
is measured in 2018, including earnings, interest, dividend, business income, rent income, investment income,
Social Security, pension and annuity payments, withdrawals from Individual Retirement Accounts (IRAs) and tax-
advantaged retirement savings accounts (e.g., 401[k]), and other government transfers. Assets are measured in
2019 and include checking and saving accounts, money market deposit and similar accounts, certificates of
deposit, al types of mutual funds, stocks and bonds, IRAs and 401(k)-type accounts, the cash value of life
insurance, other managed assets, the value of vehicles, the value of real estate, business interests, and other
miscel aneous assets. A household is considered to own a house if the household owns a ranch, farm, mobile
home, house, condo, co-op, or other type of property.
Policy Options
Some aged households with debt, such as people with limited income or assets, may have limited
income to service debt. Policymakers have several options to assist these households by
improving their financial literacy in debt management and retirement planning, as wel as
improving their retirement income by reducing the negative effect from certain debt payments.
Improving Financial Literacy
Financial literacy is general y defined as the “the skil s, knowledge and tools that equip people to
make individual financial decisions and actions to attain their goals.” Research has shown that
financial knowledge can help older people manage unsustainable debt exposure. For example,
one study analyzed the population approaching retirement age (between ages 51 and 61) and
found that individuals with higher financial literacy are less likely to carry excessive debt, be
contacted by debt collectors, or carry medical debt or student loans.43 Another study found that
financial literacy can explain about 30%-40% of wealth inequality.44
Government agencies, workplaces, financial institutions, and local nonprofit organizations can
provide financial literacy programs. The Financial Literacy and Education Commission (FLEC)
coordinates financial literacy and education efforts across relevant federal government agencies.
For example, the Consumer Financial Protection Bureau, a federal agency that participates in the
FLEC, educates the public on basic financial capabilities, including managing payment of bil s
and debts and planning for retirement.45 According to the FLEC report, the federal government’s

43 Annamaria Lusardi, Olivia S. Mitchell, and Noemi Oggero, Understanding Debt in the Older Population, National
Bureau of Economic Research, Working Paper no. 28236, December 2020.
44 Annamaria Lusardi, Pierre-Carl Michaud, and Olivia S. Mitchell, “Optimal Financial Literacy and Wealth
Inequality,” Journal of Political Econom y, vol. 125, no. 2 (2017), pp. 431-477.
45 FLEC, U.S. National Strategy for Financial Literacy 2020. For more information about retirement planning, see CRS
Report R46441, Saving for Retirem ent: Household Decisionm aking and Policy Options.
Congressional Research Service
22

Demographic and Socioeconomic Characteristics of Older Households with Debt: 2019

goals relating to financial literacy include supporting the development of core financial
competencies in consumers through access to effective information, financial education
resources, and programs so consumers can make informed financial decisions.46
In addition to financial education programs provided by government, policies can also be made to
promote workplace financial literacy programs, which can benefit individuals during their
working years as wel as into their retirement.47 Retirement planning workshops can also be
designed to include components of debt risk and debt management skil s (if not currently
available).
Promoting Retirement Income: Policy Options Related to Student
Loans
Social Security
Student loan debt can impact the financial status of older Americans in retirement in ways that
other types of debt do not. For example, in the event of default on federal student loans,48 a
portion of the borrower’s Social Security benefits can be claimed to pay off the loans. Under
current law, Social Security benefits may be offset in an amount up to the lesser of 15% of the
borrower's monthly benefit amount or the amount that his or her monthly benefit exceeds $750.49
The number of individuals aged 65 and older whose Social Security benefits were offset to pay
student loans increased from about 6,000 in FY2002 to 38,000 in FY2015.50 Most of these federal
student loans were incurred primarily for older Americans’ own education rather than for their
dependents’ education.51
To reduce the negative effect of defaulted student loans on Social Security benefits, some
policymakers have proposed to exempt Social Security benefits from garnishment for defaulted
student loans.52
Retirement Savings
Employer-sponsored defined contribution plans, such as a 401(k), are retirement savings accounts
funded through tax-deductible contributions by the worker and frequently matched in part or full
by the employer. Some workers who are obliged to make student loan payments may save little or

46 FLEC, Promoting Financial Success in the United States: National Strategy for Financial Litera cy, 2011, pp. 8-9,
https://www.treasury.gov/resource-center/financial-education/Documents/NationalStrategyBook_12310%20(2).pdf;
and FLEC, Prom oting Financial Success in the United States: National Strategy for Financial Literacy 2016 Update ,
2016, https://www.treasury.gov/resource-center/financial-education/Documents/
National%20Strategy%202016%20Update.pdf.
47 Craig Copeland, Who Is Most Vulnerable to the Ticking Debt Time Bomb in Retirement: Families with the Oldest,
Black/African Am erican, and Hispanic Fam ily Heads, Employee Benefit Research Institute, December 17, 2020.
48 Federal student loans administered by the U.S. Department of Education make up the largest portion of student loans
in the United States. Student loans from private lenders, such as banks and credit unions, account for roughly 10%-15%
(as of 2012) of the student loan market.
49 31 U.S.C. §3716(c)(3)(A); 31 C.F.R. §285.4(e).
50 Government Accountability Office, Social Security Offsets: Improvements to Program Design Could Better Assist
Older Student Loan Borrowers with Obtaining Perm itted Relief, GAO-17-45, December 2016, https://www.gao.gov/
assets/690/681722.pdf.
51 Ibid.
52 For example, see No Garnishing of Social Security for Student Debt Act (H.R. 5907) in the 116th Congress.
Congressional Research Service
23

Demographic and Social Characteristics of Older Households with Debt: 2019

a lower amount in their retirement accounts than those without student loans, thus losing the
matching contributions from their employers.
Policymakers have proposed al owing employers to make matching contributions into workers’
retirement plans for their employees’ student loan payments, essential y treating those student
loan payments as if they were employee contributions to the retirement plans. This al ows
workers who cannot afford to make their own retirement plan contributions because of their
student loan payments to build their retirement savings even while they are paying down their
student loan debt.53 This policy would be likely to result in more available funds to withdraw
during retirement. It is, however, unclear how employers would respond to this policy, because
this proposal would potential y increase the cost of hiring for workers with outstanding student
loans.

Author Information

Zhe Li

Analyst in Social Policy

Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
shared staff to congressional committees and Members of Congress. It operates solely at the behest of and
under the direction of Congress. Information in a CRS Report should n ot be relied upon for purposes other
than public understanding of information that has been provided by CRS to Members of Congress in
connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not
subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in
its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or
material from a third party, you may need to obtain the permission of the copyright holder if you wish to
copy or otherwise use copyrighted material.

53 For example, see Retirement Parity for Student Loans Act (H.R. 6276 and S. 1428) in the 116th Congress.
Congressional Research Service
R46870 · VERSION 1 · NEW
24

Download PDF

Download EPUB

Revision History

Aug. 9, 2021

HTML · PDF

Metadata

Topic areas

Domestic Social Policy

Report Type: CRS Report

Source: CRSReports.Congress.gov

Raw Metadata: JSON