Last time, we broke down the high-stakes decision of when to claim Social Security—and how delaying can mean hundreds of thousands more over the course of your retirement. But now we turn to something that quietly kills retirement dreams: debt.

It’s one of the most dangerous financial burdens to carry into retirement. Unlike your working years, when you could rely on a steady paycheck to stay ahead, retirement often comes with fixed income—and that makes debt feel heavier by the month.

The numbers don’t lie: more than 40% of retirees carry debt into retirement. That includes mortgages, car loans, credit cards, and even lingering student loans—either theirs or co-signed for kids or grandkids. And it’s not just a mild nuisance. It can become a financial crisis.

Think about it: if you’re pulling $3,000 a month from Social Security, pensions, or savings—and $1,200 of that is going toward loan payments—what’s left to cover rising healthcare costs, home repairs, or emergencies?

Even a modest amount of monthly debt can destroy your financial cushion over time. And it gets worse with interest rates climbing—especially for credit card debt, which now averages over 20% APR.

The elite class doesn’t carry debt into retirement. They pay down liabilities during peak earning years. They downsize early. They avoid car leases and instead invest in assets that grow. You can take a page from that playbook—starting today.

Here’s the first step: get clear on your total debt picture. List every balance, monthly payment, and interest rate. Most people have more debt than they realize—especially if they’re still making minimum payments on high-interest credit cards or ignoring student loan deferrals.

Then make a plan. Consider using the years right before retirement—often the highest-earning years—to attack your highest-interest debt first. Or look at consolidating into a lower-interest option, so more of your money goes toward principal and less to the bank.

If you’re already retired and still carrying debt, you’re not stuck. Many financial advisors recommend downsizing, delaying large discretionary purchases, or using part-time income to crush smaller debts first. Small wins matter—they reduce pressure and free up cash.

Remember: retirement isn’t just about what you have—it’s about what you keep. And nothing drains your retirement income faster than interest payments to someone else.

Tomorrow, we’ll rotate again—this time looking at how Roth accounts offer one of the most powerful tools for protecting your retirement income from future taxes.