Debt among older people ''is increasing''

By MoneyhighStreet Staff. Published on August 13, 2008 This post currently has no comments.

Older woman with walker
A new report has suggested that more and more people from the UK will retire with significant amounts of personal debt.

The survey, which was based on 4,507 people in the UK aged 55 and over who released equity in their home with Key Retirement Solutions in 2007, showed that one in three people over the age of 55 have outstanding unsecured debts averaging £11,106.

In particular, around a quarter have unsecured loans, typically amounting to £8,766. On top of this, approximately one fifth of people in the age bracket owe an average of £8,358 on credit cards.

Worryingly, the study indicated that debt levels increase as people get older, with the average amount of unsecured borrowing for those over the age of 70 standing at £10,659.

"Retirement should be a time to enjoy yourself after all those years of hard work, yet one in 20 people in their 60s, 70s and 80s admit to constantly struggling to keep up with financial commitments or having fallen into arrears," commented Dean Mirfin, the business development director at Key Retirement Solutions.

"The cost of living for the elderly has surpassed inflation over the past decade; therefore, it is more important than ever that consumers are aware of the dangers of approaching retirement with such large amounts of debt."