Over 55s Becoming Increasingly Concerned By Debt

Tue, 22 Mar 2011

Debt is becoming a growing problem among Britons over the age of 55, new research has revealed.

The fifth quarterly Aviva Real Retirement Report, which surveys UK residents aged 55 and over, has found that nearly one in three people in this group are in debt, and that a quarter of those do not expect to clear their debt until they are 75.

Furthermore, 15 per cent expect that they will never be able to repay what they owe.

According to the research, credit card debt is the most common form of unsecured debt, with 30 per cent of over-55s owing money on their plastic, while personal loans account for the largest amount of unsecured debt, with 13 per cent owing an average of £5,983.

In terms of secured debt, 21 per cent of over-55s are still making mortgage repayments and the average mortgage debt among this age group has climbed £10,000 during the last twelve months.

The report also revealed that while debt levels increase, the average monthly income of such consumers has dropped by four per cent over the past year and the number of people with less than £500 put aside in a savings account has risen from 21 per cent to 30 per cent.

Commenting on the findings, Clive Bolton, At Retirement Director at Aviva, said: "While there isn't one single cause for people's money worries, the combination of economic and social factors over the last year has impacted on many individuals' plans for their retirement years."

He added: "We know from previous reports that many people are looking to work into retirement - and for people in debt this may be a good solution."

"However, looking forward, we would urge people to think about their retirement sooner as life expectancy figures indicate more of us will be living longer and we will need to increasingly provide for ourselves."
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