Should you pay off your debt before retirement?

But being unable to pay off all of your debt before you retire will not doom you to an impoverished second act. The important thing is to prioritize your finances in the years leading up to retirement to help you make the most of the money you have.

Is retiring with debt a financial sin?

Retiring with debt is often considered a cardinal financial sin: Every dollar you owe reduces your income in retirement, after all. But on the other hand, blindly prioritizing debt reduction before retirement savings, particularly for low-interest debt, could shortchange your nest egg.

Should you carry your debts into retirement?

Carrying your debts into retirement is obviously not ideal. Research has shown that seniors who retire without mortgages, for instance, face less financial insecurity than their peers who don’t. But being unable to pay off all of your debt before you retire will not doom you to an impoverished second act.