Financial vulnerability in later life: Racial and ethnic disparities and debt delinquency among older adults

Mingli Zhong

Economics Letters, 2025, vol. 252, issue C

Abstract: We examine debt delinquency among U.S. adults aged 50+, using administrative data from 4 million borrowers. In August 2022, about one in five older adults had delinquent debt, signaling financial challenges in retirement. Delinquency rates decreased with age, affecting 25 % of those aged 50–61 and 16 % of those 62+. Racial/ethnic disparities were evident: consumers in majority American Indian/Alaska Native, Black, Hispanic, or Asian American/Pacific Islander areas faced higher probabilities of delinquency and larger median debt amounts compared to majority-white areas across various debt types. These findings highlight disparities in financial security among older adults.

Keywords: Debt; Delinquent debt; Older adults; Racial disparities; Retirement security (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:252:y:2025:i:c:s0165176525002113

DOI: 10.1016/j.econlet.2025.112374

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