Retirees facing debt

A significant number of people aged between 50 and 59 are expected to still be paying off their outstanding debts when they are retired, according to a new report.

Research by Scottish Widows found that one in five retired homeowners have an outstanding mortgage on their property, while one in three have carried over short-term debts, such as credit cards and personal loans, in each of last three months.

Ian Naismith, head of pensions market development at the firm, said that the research revealed that a number of people will be facing significant “financial pressure” when they retire.

“It is important for those people who will be reaching retirement in the next few years, and still have debt outstanding on their mortgage, to consider how best to prepare themselves for the eventuality of having to juggle their debts on a reduced income when they stop working,” he remarked.

Earlier in the year, Key Retirement Solutions reported that the average British pensioner owed £7,551 in credit card debt and £9,098 in personal loans.

Dean Mirfin, director of the company, said that access to “easy credit” had added to this mounting level of debt.

© Adfero Ltd

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