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Debt proves a major problem in retirement
According to the Prudential Class of 2011 study, more than a fifth of those retiring this year will still owe money on their credit cards, mortgages and bank loans.
In fact, male retirees are more likely to be in debt – and owe a greater amount – than their female counterparts. Roughly 23 percent of male respondents will still be indebted, with average arrears of £39,500, compared to 18 percent and £25,100 for women.
Overall, the average amount owed is £33,100, but five percent have over £50,000 outstanding. Most of this debt results from credit cards and mortgages (55 and 52 percent respectively), although some retirees also have bank loans (19 percent) and overdrafts (14 percent) to pay off.
Any retirees struggling to pay off their debts on a lower income should seek professional financial advice as soon as possible.
