Responding to a new report claiming that debt levels amongst pensioners are increasing, debt management company Gregory Pennington said that finding the right debt solution is important for anyone struggling with debt, regardless of age.
The company added that in particular, anyone approaching retirement age with debts that they may not be able to repay in time should contact a professional debt adviser to discuss the best way to clear their debts.
The research by pensions and investment provider Scottish Widows found that around 34% of retired people have ‘non-mortgage’ debts, such as credit cards and personal loans, with each owing an average of £7,344.
The figure is 9% higher than at the same point last year, and almost 25% higher than it was in 2007, suggesting that the problem has become no easier for pensioners as the economic downturn has progressed.
Meanwhile, the research found that almost one in six (15% of) retired people in the UK are still repaying their mortgage, with an average remaining debt of £50,100 – £8,000 higher than 2008’s figure.
In total, Scottish Widows claimed that pensioners owed a collective £90.4 billion – up from £72.3 billion last year.
Ian Naismith, Head of Pensions Market Development at Scottish Widows, said: “The situation for retirees in debt is not getting any better, and an increase of eight thousand in the average amount of mortgage debt is alarming.
“The recession has seemingly done nothing to encourage retirees to cut their debt, and with the possibility of the value of their property dwindling, they could be leaving themselves in a vulnerable position.
“Those in retirement should be able to enjoy life and not worry about the financial burden of debt, as well as their retirement income.”
A spokesperson for Gregory Pennington said: “Some people might assume that debt is a ‘young person’s problem’, but in a difficult economic climate we are all at risk. Pensioners, who often live on a much lower income than they did while they were working, can be particularly vulnerable.
Via EPR Network
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