Debt management: Pensioner poverty 'declining'

01/02/2010

Older people may be taking heed of debt advice as pensioner debt has fallen by almost a third.

The latest figures from the Office for National Statistics show that between 1998-99 and 2007-08 the number of retirees living in poverty shrunk by almost a third.

Such a reduction could be attributed to better management of debt and pension funds.

Figures from the report found that more and more people are making provision for their retirement with occupational pensions and annuities, instead of relying on a state pension.

There are nearly two million fewer pensioners living below the poverty line than there were a decade previously.

Fuel poverty also remained a major problem for older people, with single people over 60 proving to be the social group most affected by the issue.

The most common definition of poverty is a household living from 60 per cent of the average national income after housing costs have been deducted.

Director of EuroDebt Kevin Still commented: "This story seems to conflict with other recent reports on the state of the 2010 retirees' pension funds, with a significant minority relying on state pension.

"Impending changes in the occupational pensions schemes should help with wider spread employer contributions, but many people over sixty require all their disposable income to make ends meet. We are still seeing very high level of unsecured debt with our older clients on Debt Management Plans."

Posted by Fiona Smith

Tags; Retirement Money Problems,

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