Retirees face rising debts

27/08/2009

The debt burden for people in retirement has risen by almost £20 billion compared to last year, the fifth annual Scottish Widows UK Pensions Report has revealed.

Some 15 per cent of retired Brits still have an outstanding mortgage, with the average amount owed on a house standing at £50,100 - up £8,000 on 2008.

There has also been a "steep increase" in non-mortgage debt linked to credit cards, personal loans and other outgoings, with the average amount owed coming to £7,344. In 2008, this figure was £6,732.

Overall, total debt for UK pensions stood at £90.41 billion, up from £72.3 billion last year.

Scottish Widows head of pensions market development Ian Naismith said: "Those in retirement should be able to enjoy life and not worry about the financial burden of debt, as well as their retirement income."

The survey also found that seven per cent of retirees have the added financial burden of dependent adult children.

Research published earlier this week by Saga Home Insurance indicated that 31 per cent of parents over 50 have seen their grown-up kids move back into the family home.

Tags; Housing Debt and Bills, Retirement Money Problems,

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