1 in 3 Workers Have More Credit Card Debt Than Retirement Savings

A third of Americans in workplace retirement plans are underwater versus their own credit card balances, according to Schroders’ 2026 US Retirement Survey. The number lands as households continue to navigate elevated rates and sticky essential costs.

The headline number

33% of workplace retirement plan participants said they have more credit card debt than retirement savings, according to the survey.

Participants think they will need to save $1.2 million to retire comfortably, but 51% expect to have less than $500,000 saved by retirement, including 24% who say they will have less than $250,000 saved.

Why the gap keeps widening

69% of plan participants believe rising healthcare, utility, insurance, and housing costs have put retirement out of reach for their generation, and 55% are unable to save 10% of their paycheck for retirement due to competing expenses.

The savings shortfall has 81% of plan participants at least slightly worried about running out of money in retirement.

Raiding the 401(k)

27% have decreased contributions to their plan, with 70% doing so in the past two years, and another 27% have borrowed money from the plan.

The most common reasons for taking loans from workplace retirement plans include paying down credit card or other debt (36%), covering unforeseen family or personal emergencies (31%) and keeping up with rising costs.

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The macro read-through

With credit card APRs near 21%, aggressively paying down high-interest debt outperforms any retirement portfolio return and should come first. That math tends to pull household cash flow away from equity contributions and toward debt service.

Among those who do know their allocations, 26% of assets are sitting in cash, while only 27% are invested in stocks, a mix that many financial professionals consider too conservative for long-term growth.

Options market and stocks to watch

Watch the consumer credit and card issuers for signs of stress or resilience:

COF: Capital One is heavily tied to card balances and delinquency trends; watch for commentary on charge-offs.

SYF: Synchrony is a pure-play on private-label and store cards, a direct read on stressed consumers.

DFS: Discover’s card book is another gauge for revolving debt trends.

V and MA: Networks benefit from spend volume even as issuers absorb credit risk; watch guidance on cross-border and US volumes.

BLK: As a major retirement asset manager, flows and mix shift between cash and equities matter for fee revenue.

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