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Millions of retirees tormented by debt worries

Millions of retirees tormented by debt worries

Category: Retirement

Updated: 14/05/2013
First Published: 13/05/2013

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Around four million retirees possess an average existing debt of over £6,900, according to shocking new figures released by the retirement income specialist, MGM Advantage.

Highlighting the financial obstacles facing many people either in or approaching retirement, the study found 10% are currently managing a personal debt of around £5,000, whilst 391,800 (24%) still owe between £50,001 and £100,000 on their mortgage.

Across the UK, 13% of retirees collectively owe a total mortgage debt of £76 billion, with 34% juggling credit card, loan and overdraft debts of up to £29 billion.

Whilst many of those questioned classed themselves as retired, 6% of people aged 55 and over have part-time jobs in order to supplement their income and make ends meet.

The provider also emphasised the importance of shopping around for the best annuity deal and suggested many people may qualify for an enhanced annuity rate due to pre-existing medical conditions.

Pension technical director at MGM Advantage, Andrew Tully, said: "These figures are alarming and show the pressure people face on a daily basis trying to balance the household budget.

"Talking about debt in retirement will be a taboo for many people who find themselves in this position, but there are ways retirees can access practical help and advice."

What next?

Find out how to get the best income in retirement, just click the link for a more in-depth discussion.

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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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