Many people retiring in debt

Wed, 25 Jan 2012

Many Britons are likely to retire in debt this year, new research has suggested.

According to figures released by Prudential, 18 per cent of those planning to quit work for good in 2012 will do so with outstanding arrears, with the average amount of money owed by retirees in debt standing at £38,200.

This level is markedly higher than the £33,100 recorded in 2011, despite the proportion of individuals coming to the end of their working days while still owing cash falling from 20 per cent to 18 per cent in this time.

It was shown that 51 per cent who are in mortgage arrears are also finding it hard to pay off outstanding credit card bills.

Vince Smith-Hughes, retirement income expert at Prudential - which serves around 25 million customers - noted a lack of financial planning could be the reason for so many people entering retirement while still owing significant sums.

The industry figure advised those still in employment to "save as much as possible as early as possible and to consult a financial adviser to help them plan for a comfortable retirement".
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