More than a fifth of over 55s have a personal loan

Often, personal loans are associated with younger people in their twenties or thirties who may be borrowing the money to buy a new car, pay for their wedding or splash out on a luxury holiday. However, it seems that even older people are lumbered with personal loan debt these days with a recent study showing that more than one fifth of consumers aged fifty five and over were paying off a personal loan.

Whilst in years gone by people reaching their late fifties and sixties enjoyed the luxury of knowing that by the time they reached this age they had paid off their debts and often their mortgage as well, leaving them financially free to enjoy life during their retirement years with no financial burden to hold them down. However, these days things are quite different for many people in their fifties and sixties many of whom still have debts such as personal loans and mortgage debt.

Research was recently carried out by the insurance giant Aviva, which showed that more than one fifth of people aged fifty five and older have a personal loan. In total 21 percent of people over this age had a personal loan. The research was carried out as part of the Aviva Real Retirement Report and involved polling more than ten thousand people aged over fifty five.

An official from Aviva said: “The over-55s have seen their finances deteriorate over the last quarter as people struggle to keep up with the rising cost of living on a relatively fixed income. Taking out a private pension, building up a respectable savings pot and paying down debt are all simple steps that people can take to ensure they don’t face these problems in retirement.”

Tags: total 21 percent, aviva, polling, over, study, retirement, late fifties

Insurance premiums could soar for flood victims

It has been revealed in a recent report that consumers who live in flood risk areas in the UK could be hit with huge insurance premiums as a result of insurance companies getting tougher. Over recent years insurance companies have had to pay out a fortune as a result of severe flooding in certain areas, which has devastated homes, and it now appears that the industry is determined to clamp down.

According to a recent report some homeowners could be hit with insurance hikes of 500 percent, and may be forced to pay the first £6000 of any claim themselves. The claims come from a report from the consumer charity the National Flood Forum, and is being prepared for a summit that will take place this month between a number of parties, including government officials, insurance industry officials, local authority officials, and representatives from the charity.

The summit will take place to try and determine how flood insurance can still be available to consumers on a widespread basis. The consumer charity surveyed three hundred flood victims, and found that the average increased that they had seen on their premiums was a massive 500 percent. One tenth of those surveyed also had flooding excluded from their policies when they came to renew their cover following a flood claim.

An official from the National Flood Forum said: ‘There’s no consistency in the treatment of flood victims by insurers. And you can’t simply move to another insurer, as they don’t want you. We found Axa, Aviva and Halifax were worst for raising premiums and excesses. The biggest danger is what happens after 2013. If you can’t get insurance, no one will give you a mortgage and you can’t sell your home.’

Tags: Flood insurance, health insurance, Forum, aviva, insurance hikes

Unions angry over insurance job cuts

Officials from unions have been angered by a decision by insurance giant Aviva to cut eighteen hundred jobs around the country. Just two years ago the company moved part of its operation to India, and ended up cutting around four thousand people from the workforce. This latest announcement has further angered union officials. Officials from Aviva say that the move is designed to improve service and cut costs, but this has not impressed unions. Read more

Tags: aviva, job cuts, Product Issues, number, Insurance, union officials, unemployment, economics