Pre-retirees could benefit from debt help

10/02/2010

Debt management could help 'pre-retirees' (people aged between 55 and 64) who are neglecting to plan for the future, according to the Aviva Real Retirement Report.

Of the older generation, the study found that this age group has the largest average mortgage, with outstanding payments of around £16,694, while those who had already retired were in a much more secure financial position.

'Pre-retirees' also had the lowest savings, at £8,593, and 40 per cent are failing to save anything at all on a monthly basis.

Debt help could benefit these people by allowing them to organise their finances before retirement age when their annual income will begin to decrease.

Clive Bolton, retirement director for Aviva Life, commented: "This first report shows a worrying picture whereby those who are already retired are actually - to a large extent - financially better off than the pre-retirees.

"Their income might shrink as people retire but the current generation of retiring and long-term retired have a higher incidence of homeownership, lower debts and more savings than the pre-retirees."

Posted by Fiona Smith

Tags; Retirement Money Problems,

Regional Debt Advice; Debt Advice Bolton,

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