Debt Levels Rising For UK Pensioners

Thu, 27 Aug 2009

Retired Britons are seeing their debt levels grow, with one in three pensioners owing money on personal loans and credit cards, according to new research by Scottish Widows .

The life and pensions provider found that that the average outstanding non- mortgage debt amongst retired people is £7,344, up from £6,732 in 2008 and £5,930 in 2007.

It also discovered that some 15 per cent of retired people are still paying off a mortgage, with an average debt of £50,100, an increase of £8,000 from last year ago.

As a result, it calculates that the total nationwide debt held by those in retirement now stands at £90.41 billion, an increase of 18.2 billion from last year’s figure.

Commenting on the findings, Ian Naismith, head of pensions market development at Scottish Widows, said: "The situation for retirees in debt is not getting any better, and an increase of eight thousand in the average amount of mortgage debt is alarming."

"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 ."

The Scottish Widows research also revealed that one in fourteen retirees have the added burden of supporting one or more adult children.
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