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In Their 50s, Americans Confront Thin Savings, Higher Debt and Uncertain Plans to Work Longer

Delaying retirement is unreliable because health issues or job loss often force earlier exits.

Overview

  • Federal Reserve data show households aged 45–54 who have retirement accounts held a median $115,000 in 2022, while Americans in their 50s carry more mortgage, auto and credit‑card debt than prior cohorts at the same age.
  • Advisers highlight costly midlife mistakes such as lifestyle creep and undershooting healthcare needs, stressing that this decade is a pivotal window to shore up savings.
  • Experts note that many workers retire earlier than intended due to health or involuntary job loss, undercutting plans to simply extend careers to close savings gaps.
  • In 2026, eligible savers can boost contributions by at least $8,000 to workplace plans and $1,100 to IRAs, with guidance to pair catch‑ups with debt reduction and contingency planning.
  • The timing of Social Security claims can shift early‑year portfolio risk, and even financially secure households report anxiety about retiring, underscoring the value of scenario testing before committing.