Responding to new research suggesting that more than half of over-50s in Britain carry non-mortgage debt, debt management company Gregory Pennington has warned of the risks of carrying debt while approaching retirement, adding that good debt management is essential for anyone with problem debts.

Research from Moneysupermarket.com found that more than half (51%) of Britain’s over-50s population hold non-mortgage debt, at an average of £6,734.

Over the past 12 months, 17% of over-50s in debt have reduced their non-mortgage debt, according to the research, but 22% have taken on more debt in this time. 5% said their debt had increased “a lot”.

48% of over-50s whose debt had increased said they had gone further into debt in order to pay bills. 15% of those in debt said they believed debt would always be part of their life.

However, 48% of over-50s had reduced their outstanding borrowings over the past year, with 21% claiming to be in a lot less debt than they were a year previously.

Tim Moss, head of loans and debt at moneysupermarket.com, said: “… It’s encouraging to see that a good number of Brits aged over 50 are taking active steps to reduce the amount they owe.

“However, the fact that half of the people in this age group are still in debt above and beyond their mortgages is alarming. Those aged over 50 have to factor how long they can continue earning, and begin thinking seriously about their finances in retirement; debts that are currently easy to service could become a millstone round their neck in later retirement years.”

A spokesperson for Gregory Pennington said that trying to pay down debt in the run-up to retirement could affect the borrower’s ability to save adequately for retirement.

Via EPR Network
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