A third of Brits `to retire in debt`

13 August 2008

New research has found one-third of British people aged over 55 are approaching retirement with outstanding unsecured debts.

A quarter of those over 55 are facing debt problems in later life, owing an average of £8,700 each on personal loans, according to figures released by Key Retirement Solutions.

Furthermore, the study of older people who have taken advantage of equity release schemes using their homes found many respondents have outstanding credit card debt.

Plastic debt now stands at an average of £8,766 for a fifth of the age group – collectively totalling over £28 million.

Business development director at the company, Dean Mirfin, said the statistics were "of real concern" even if they reflect only part of the age sector, adding that the cost of living for people in later life has surpassed the rate of inflation over the past ten years.

"It is more important than ever that consumers are aware of the dangers of approaching retirement with such large amounts of debt," he said.

The study also found three per cent of the age group in their overdraft but on average owe £3,667.

Last week, Halifax said British people are confused about saving for retirement.

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