The 2024 Annual Retirement Study from Allianz Life Insurance Company of North America (Allianz Life) reveals that a significant number of Americans are burdened by debt, with many concerned about how it will affect their financial futures.
A majority—55%—of Americans report actively working to pay off debt as part of their long-term financial goals. This concern is especially pronounced among Gen Xers, with 64% prioritizing debt repayment compared to 54% of both millennials and baby boomers.
Debt’s Influence on Retirement Savings
Debt is a significant barrier to retirement savings for many. Among those who wish they had saved more for retirement, 46% cite non-housing debt—such as car loans, credit cards, and student loans—as a key obstacle. Millennials (56%) feel this impact more acutely than Gen Xers (50%) or boomers (35%).
Housing debt is also a major factor, with 34% of Americans indicating it limits their ability to save for retirement. Gen Xers (39%) are the most affected, followed by millennials (33%) and boomers (34%).
“Debt can have a significant impact on achieving long-term financial goals like retirement,” said Kelly LaVigne, VP of Consumer Insights at Allianz Life. “Finding a balance between paying off debt and saving for the future is essential. Otherwise, debt may leave individuals vulnerable to outliving their savings in retirement.”
Balancing Competing Financial Priorities
The study highlights that many Americans struggle to balance competing financial priorities, including saving for retirement, paying off debt, and funding their children’s education. More than six in ten (62%) say juggling these goals makes it difficult to focus and prioritize.
This sentiment is especially common among millennials, with 73% reporting difficulty balancing financial goals, compared to 50% of Gen Xers and just 25% of boomers. Additionally, 40% of Americans worry that existing debt will negatively affect their future quality of life. This concern is most pronounced among millennials (53%), followed by Gen Xers (44%) and boomers (18%).
Despite these worries, only 14% of Americans with a financial professional have discussed debt-related concerns with them.
“For all financial goals, it’s important to have a written plan of how you will achieve them,” LaVigne emphasized. “A financial professional can help create a strategy to balance debt repayment with saving for a secure financial future.”
This study underscores the importance of addressing debt as a critical component of financial planning, particularly for younger generations striving to achieve long-term stability.
