MassMutual chief says Americans’ debt burden is rising $10 a day

MassMutual chief executive Roger Crandall warned that the federal debt is adding to Americans’ financial burden each day, Fortune reported after an interview with him. Crandall said each American’s share of U.S. debt is increasing by $10 daily, while the figure is more than $25 a day for tax-paying Americans.

The warning matters because rising public debt can touch borrowing costs, the dollar and household finances, Fortune’s Diane Brady wrote. She reported that the U.S. Treasury is now paying $24 billion a week in interest on the debt, adding pressure to debates over retirement, savings and fiscal policy.

Crandall leads MassMutual, a 175-year-old mutual insurance company that Fortune said serves more than 4 million customers and has more than $1 trillion in coverage. Fortune also noted that Crandall chaired the Federal Reserve Bank of Boston through the end of last year.

Crandall told Fortune that many parts of the U.S. financial and benefits system were designed around a full-time, 40-hour-a-week job with employer-provided benefits. He said that model made more sense when lifespans were shorter, while the country is now moving toward a society in which more people may live to 100.

According to Fortune, Crandall argued that the country has not adequately prepared for that shift. He warned that even modest changes could create a less favorable long-term situation for the economy and households.

Savings and longer working lives

Brady reported that she and Crandall discussed the effect of compounding and the value of investing early. She pointed to Trump savings accounts for children as one policy aimed at encouraging earlier investment, while also saying employers could do more to contribute to such accounts and push younger workers to use 401(k) plans.

Fortune also cited reports that the Trump administration is examining Australia’s mandated retirement-savings system as a possible model for changes in the United States. The article did not say what specific U.S. plan may emerge from that review.

Crandall’s company structure shapes his view of the issue, according to Fortune. MassMutual is owned by its members and participating policyholders, a model Brady described as oriented toward long-term investment across generations.

Health benefits tied to financial planning

Crandall told Fortune that MassMutual, like other life insurers, now offers a wellness feature at no cost. He described it as including a mental health app, a blood test related to cancer and a blood test tied to genetic predisposition.

He said giving policyholders more ways to invest in their health increased engagement and helped the company’s results. Crandall told Fortune the gains from the wellness benefit were large enough for MassMutual to cover the cost.

On the broader economy, Crandall told Fortune that Congress will likely have to provide the answer, whether in 2028 or by 2032. Until then, Fortune reported, he sees room for employers to promote retirement saving among younger staff and offer flexible work options for employees who might otherwise leave the workforce.

This story draws on original reporting from Fortune.