13 August 2007
One in three grandparents' retirement is marred by high levels of credit card and personal loan debt, a new study has found.
According to Scottish Widows' annual UK pensions report, a third of retired people have carried over credit card and personal loan debt for each of the last three months.
Indeed the average balance owed for these loans currently stands at £5,900, the poll unveiled.
Furthermore, retirees are also more likely to still be burdened with mortgage repayments than ever before, with an average outstanding mortgage debt of £38,000, while one in eight people owes more than £50,000.
Ian Naismith, Head of Pensions Market Development at Scottish Widows, warned retirees about the importance of assessing finances carefully in the run up to retirement to avoid money worries later on.
"It is important for those people who will be reaching retirement in the next few years, and still have debt outstanding on their mortgage, to consider how best to prepare themselves for the eventuality of having to juggle their debts on a reduced income when they stop working," he advised.
According to figures from Scottish Widows, 700,000 retirees nationwide have one or even two financially dependent children adding to their financial constraints, with almost two thirds of these aged 18 years and over.
The estimated total debt for UK retirees is £57 billion, a figure which includes credit card, personal loans and mortgage arrears.
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