It has been revealed that around 20 percent of people that are set to retire this year still have mounds of debt to pay off, with the average amount that they owe coming in at a massive £30,000 each. The figures come from Prudential, which carried out research into how many people due to retire this year still had debts hanging around their necks.
The figures showed that around 21 percent of those that were going to be claiming on their pension this year would still owe money. A further 14 percent admitted that they were not sure whether they would still owe money by the time they started drawing their pension.
Whilst the average level of debt amongst those that were planning to retire this year was £33, 100 there were some people that would still owe in excess of £50,000 when they retired. Nearly 20 percent of those polled said that they had a personal loan that would not be cleared by the time they retired, and 14 percent said that they did not believe that they would be able to clear their overdrafts by the time they retired.
There are concerns that many of those set to retire this year will face huge financial issues, as they will still have to make repayments on their debts, but their income could go down significantly. The research showed that men were more likely than women to have debts when they retired, with 23 percent of men likely to have debt when they retire compared to 18 percent of women.
A spokesperson from Prudential said: “These figures show how the class of 2011, a previously risk-averse generation of savers, took advantage of the consumer credit boom of the last decade. Total consumer debt in the UK has more than doubled since 2000 and a large number of people planning to retire this year are now faced with spending a significant part of their retirement income meeting these debt repayments.”
Tags: planning, meeting, retirement, average level, year, consumer credit boomRelated posts:
Many Brits will retire owing moneyRetired people have thousands of pounds on credit cards and loansBankruptcies up 38 PercentFiled under: News
Like this post? Subscribe to my RSS feed and get loads more!
Posted in: 
0 comments:
Post a Comment