New Survey Finds Latino Seniors Struggling Without Savings and Relying on Credit Cards to Survive — What Does This Mean for the Community?

New Survey Finds Latino Seniors Struggling Without Savings and Relying on Credit Cards to Survive — What Does This Mean for the Community?
Credit: AARP

Latino seniors in the U.S. are turning to credit cards to cover essential expenses, revealing financial strain that threatens retirement security. A new AARP survey shows that 56 percent of Latinos over 50 who carry credit card debt rely on it for basic needs. For 18 percent of them, this has been a monthly reality over the past year. Rising costs in food, housing, utilities, healthcare, and unexpected financial burdens have made it harder to stay afloat. 

Debt Is Growing for Latino Seniors and Many Carry High Balances

The report shows that 39 percent of Latino seniors with credit card debt have higher balances than they did a year ago. Nearly half owe $5,000 or more, and 28 percent carry balances of $10,000 or higher. Unexpected expenses are a significant factor, with 87 percent of respondents stating that financial surprises contribute to their credit card debt. 

Financial stress is particularly evident among those aged 50 to 64, individuals earning less than $40,000 annually, and Latino and Black seniors. Over half of adults aged 50 to 64 carry monthly credit card balances, and the financial burden extends to 42 percent of those aged 65 to 74 and 35 percent of those 75 and older. 

Long-Term Financial Strain and Healthcare Costs

One in four seniors with credit card debt worries about how long it will take to pay off their balances, and around 20 percent expect it will take over five years. Many struggle with everyday expenses, car payments, housing costs, and medical bills. 

Healthcare expenses are a major driver of debt. Half of respondents say medical costs have contributed to their financial struggles, with dental care (46 percent), prescription medications (35 percent), and vision care (19 percent) ranking as the most common expenses. 

The financial burden of Latino seniors extends beyond their own struggles. Their children, who are often Gen X, Millennials, or Gen Z, are left to provide financial and emotional support, taking on additional responsibilities as caregivers. The weight of generational debt compounds as younger Latinos work to support aging parents while also trying to secure their own futures. Systemic barriers and limited financial opportunities have made it difficult for older Latinos to accumulate wealth, and the belief that Social Security would be a reliable safety net has proven to be flawed. Many Millennials and Gen Z Latinos may not see the benefits of Social Security by the time they retire, making it critical for younger generations to learn from this reality and prioritize financial planning now. 

Seniors are also facing long-term financial setbacks due to their reliance on credit. Nearly a quarter are still paying off balances from canceled credit cards, and 46 percent say their ability to save for the future has been affected. 

Financial hardship among Latino seniors is not just a personal burden but a growing concern for entire families. The weight of credit card debt, rising costs, and a failing safety net are pushing younger generations to step in, often at the expense of their own financial stability. Breaking this cycle will require structural changes that ensure better opportunities and protections for Latino communities. Until then, financial planning and debt management will remain essential tools for those hoping to avoid the same struggles in the years ahead.
 

For those wondering where to start, AARP provides financial tools and resources to help seniors manage their debt and plan for retirement at www.aarp.org/ccdebt and AARP.org/MoneyTools. 

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