How Does Your Credit Card Debt Compare to People Your Age?

There's no getting around the fact that Americans, in general, have a lot of credit card debt. But, that amount of debt varies based on age groups. For example, the average person in Gen Z has a different amount of credit card debt than the average person in the Silent Generation. So, how does your credit card debt compare to others in your age group? A new study shows how much credit card debt the average individual in each generation carries.

The Federal Reserve recently released data stating that credit card balances increased by $50 billion to $1.13 trillion over the fourth quarter of 2023, while mortgage balances rose by $112 billion to $12.25 trillion. Outside of credit cards and mortgages, auto loan balances also went up by $12 billion to $1.61 trillion, a number that's been steadily increasing since 2011.

Another report from Transunion states that total bankcard balances reached a new record of $995 billion in Q3 2023. They add that the average bankcard balance per consumer went up 11% year to date to $6,088, the highest figure in the last 10 years. "Total bankcard credit lines increased 9% YoY to $4.6T while the average credit line per consumer has surpassed the $25K mark," they add. In other words, credit cards are being maxed out at a record high in America.

The average amount of credit card debt varies based on the generations. Gen X is the generation with the most credit card debt. In my opinion, this makes sense, because Gen X was the generation hit hardest by the 2008 recession. They were also the first generation with massive student loans. When you look at the numbers, it's actually shocking how much more credit card debt Gen X has compared to the other generations. That said, even though Gen Xers have the highest credit card debt by generation, millennials' average balances grew the most, increasing by around 15% in the last quarter of 2023, compared with the last quarter of 2022. So, maybe they'll catch up to Gen X at some point, but it will take a while.

Below is a list of the average credit card debt per person in each generation, viaExperian. These numbers are for Q3 of 2023. In the same study, they note that only 7.1% of Americans have a FICO® Score Credit Range of 800-850, which is the exceptional credit score range.

Gen Z (18–26 years old) - $3,262
Millennials (27–42 years old) - $6,521
Gen X (43–58 years old) - $9,123
Baby boomers (59–77 years old) - $6,642
Silent Generation (78 and older) - $3,412

As workers get older and continue on their career paths, in theory, their 401K should reflect that and go up. So, the average and median amount of money that people have in their 401Ks end up being a factor of how long they've worked (their age). It's also, of course, a factor of how much money they make and put into their 401Ks. So, have you ever wondered if you have more or less in your 401K than most people your age?

Let's get into retirement details. According to Fidelity, "The age you plan to retire can have a big impact on the amount you need to save, and your milestones along the way," they state on their website. "The longer you can postpone retirement, the lower your savings factor can be." They add that if you delay saving, your savings will take a longer time to grow.

Also, if you're wondering how much money you need to retire comfortably, that really is different for everyone. You have to look at how you want to live in your retirement. Do you want to have lots of extra money to travel? Or, would you rather retire earlier with less and live a less elaborate lifestyle?

According to Citizensbank.com, you want to have enough money to make up 60% to 100% of your pre-retirement annual income. "This rule of thumb aims to maintain a quality of life similar to the one you enjoy immediately prior to retirement, while keeping in mind the realities of different budget levels per line item, like lower work-related and housing costs likely offset by higher healthcare costs," they explain. They also say that "becoming a 'millionaire' is still an impressive financial milestone, but $1 million today doesn't go nearly as far as it did in 1980, when $1 million had the same buying power as $3.1 million today."

Now, let's get into the question at hand. How does your retirement savings hold up to those in your age group? Here are some details from Vanguard.

In this age group, the average 401K balance is $5,236 and the median is $1,948. You're obviously just getting your feet wet in investing. Some people fresh out of high school or college probably don't have anything in their 401Ks at this point.

In this age group, the average 401K balance is $30,017 and the median is $11,357. This is significantly higher than the under 25 age range. But, it's definitely not enough to retire on. So, keep grinding.

In this age group, the average 401K balance is $76,354 and the median is $28,318. Notice the big difference between average and median. Obviously, with the median, that means half of people in that age group have less than $28,318 and half have more.

In this age group, the average 401K balance is $142,069 and the median is $48,301. This is another one where the average and median are very different. Half of people in that age group have less than $48,301 and half have more.

In this age group, the average 401K balance is $207,874 and the median is $71,168. Some people "early retire" in this age group. But, only if you have enough cash. People with pensions are sometimes able to retire in this age group. Also, you can receive Social Security retirement benefits as early as age 62.

In this age group, the average 401K balance is $232,710 and the median is $70,620. Since you can receive Social Security retirement benefits as early as age 62, many people do choose to retire when they hit 65.

So, there you have it, the average and median 401K balance by age. The stats are from Vanguard's "How America Saves 2023" report, which offers data on the average and median 401K account balances by age. Find the full report here.