Fifty-five percent of Americans in a new study from Allianz Life report that they are striving to pay off debt in order to meet their long-term financial goals. Many say that debt has hindered their retirement savings.
Paying off debt is especially important to Gen Xers, 64% of whom have this as a priority, compared with 54% of both millennials and baby boomers.
Among study participants who wish that they had saved more for retirement, 46% said that non-housing debt from car loans, credit cards and student loans was keeping them from saving more. In particular, 56% of millennials feel that non-housing debt is limiting their retirement savings, compared with 50% of Gen Xers and 35% of boomers.
Housing debt, too, is significantly affecting Americans’ ability to save for retirement, with a third of respondents who wish they had saved more saying that they are experiencing its negative effect on their retirement nest eggs.
“It is important to find a balance between paying off debt and saving for your financial future,” Kelly LaVigne, vice president of consumer insights at Allianz Life, said in a statement. “Limiting retirement saving because of debt can leave you vulnerable to outliving savings in retirement.”
Allianz Life conducted an online survey in February and March with a nationally representative sample of 1,000 individuals 25 and older with an annual household income of at least $50,000 for single respondents or $75,000 for those who are married or partnered, or investable assets of $150,000 or more.
