Huge debts owed by retirees

It has been claimed that many retirees in the UK are having to deal with huge amounts of debt with thousands of pounds outstanding on credit cards and loans.

It is claimed that the average debt owed by retired people has increased, and this is according to a Pensions Report by Scottish Widows UK. These debts are just personal debts, and do not include mortgages.

Officials have said that this shows that all age groups are being affected by rising debts.

There is said to have been a £600 increase in personal non mortgage related debt levels since last year, and an increase of around £1400 compared to the previous year.

Worryingly, around one in every six pensioners is said to have average mortgage debt of around £50,000, which adds to their debt commitments. The increase in mortgage debt compared to last year was said to be around £8000.

Those that are nearing retirement are now being urged to pay off as much of their personal debt as possible given the rising level of debt that retirees are now finding themselves in.

For most this will mean making plans to clear off as much debt as possible on credit cards, loans, and other non-mortgage related debt. For many retirees the chance of enjoying retirement is slipping away because they have to spend so much money on paying off their debts.

One industry official said: “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.”

Tags: retiree debts, vulnerable position, non-mortgage related debt, retirement income, pensioner debt, GBP, mortgage debt, pensioners