Older workers struggle with credit card debt, hindering retirement

Many older workers are struggling with credit card debt, which is affecting their ability to save for retirement. A recent AARP report shows nearly half of adults aged 50 and older use credit cards for basic living expenses, with many carrying significant debt. The situation has worsened, with about 30% of older adults reporting increased credit card debt compared to last year. Rising medical costs and inflation are major contributors, leading many to choose between paying off debt and saving for retirement. Additionally, one in three workers has tapped into retirement savings to manage debt, with hardship withdrawals rising from 3.6% to 4.8% last year. This trend highlights the ongoing financial challenges faced by older Americans as they approach retirement.