Levels of debt and borrowing have surged among the over 50s. A quarter have credit card debts and other loans averaging £3,000 each, Help the Aged found.

One in five people aged 60 to 70 have non-mortgage debts of up to £2,000 each.

Borrowers in their late 50s and early 60s now owe at least four times more than people that age did a decade ago. This growth rate has even outpaced the trebling of debt levels among 16 to 54-year-olds.

Typically, people still owe less money in total as they get older. But a minority are using credit cards to cover basic essentials such as household bills and buying food, the Debt and Older People report says.

Paying for gas, electricity and water are where most pensioners get into difficulties. One fifth find their retirement income is not enough to give them the standard of living they want.

Debt levels may even be forcing some people to delay retirement, the researchers warns. The report by Bristol University’s personal finance research centre was commissioned by Help the Aged and Barclays.

Help the Aged’s head of policy David Sinclair said: “This report shows that there are some worrying trends in credit usage that could represent a debt crisis for those coming up to retirement.”

One pensioner, retired shop worker Patricia President, is facing bankruptcy after running up debts of nearly £15,000.
Mrs President, 68, of Luton, Beds, said she spent the money on day to day items, not on extravagant living.

SEARCH RETIREMENT for:

• Got A Story? Get in touch online
• Email the news desk directly here!

• Retirement Homepage

Post to:

Print This Article

Email To A Friend

Contact Us About Article

Get RSS