Debt time bomb facing UK pensioners
In the future, more of the UK's pensioners could need debt relief services or IVAs, as they are increasingly finding themselves in financial trouble, a report suggests.
According to research carried out for Key Retirement Solutions, one in four people in the UK aged over 60 still have outstanding mortgage debt.
This borrowing is worth £98 billion collectively, meaning that the average person who is retired or nearing retirement still owes £31,000.
Worryingly, the report shows that as people get older they tend to find themselves in more debt. Typically, people aged between 60 and 63 owe £23,512, while the over-70s owe £37,000.
"With the rising trend in higher levels of borrowing, and fewer people saving for retirement, this could be a time-bomb waiting to hit the next few generations of pensioners even harder than we're seeing now," explained Dean Mirfin, the business development director at Key Retirement Solutions.
"Key Retirement Solutions' findings demonstrate the very difficult situation a sizable number of pensioners find themselves in, trying to cope with debt repayments as well as rising living costs," added Chris Tapp, the associate director of charity Credit Action.
Mr Tapp added that more people could have to seek debt consolidation or IVAs in the future, as "we see people borrowing more, borrowing for longer and saving less".
Source: moneyhighstreet.com
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