Britons retire into debt

Leading UK debt solution experts, ClearDebt, warn British pensioners could be taking their debt to the grave.

Leading UK debt solution experts, ClearDebt, warn British pensioners could be taking their debt to the grave.

Research conducted by ClearDebt, using their database of nearly 50,000 individuals with debt issues, shows that retired people owe a staggering 234% of their annual income, almost 100% more than those in employment.

The statistics released by ClearDebt confirm retired people with debt worries owe just under £25,000 and when relying on a pension alone, can be in for a shock when realising how long it will take to settle their bill.

Despite these worrying statistics, a poll taken this week by ClearDebt indicates:

  • 25% of retired people in the UK believe their debt is under control;
  • 50% claim they have taken care of it, and only;
  • 25% admit that their life is controlled by it.

None have stated they believe they cannot resolve their debt, and this denial is a matter of great concern to ClearDebt Marketing Director, Andrew Smith.

Commenting, Smith says
“Retirement should be something to look forward to after years of hard work. It’s very worrying to see that people are now retiring to a life of debt”.

A report released by Clerical Medical in 2006 regarding pensioner spending indicates an average weekly spend of £250 per week. For ClearDebt’s debt-worried pensioners this would mean a further debt of £155 per week if relying only on their state pension for income. Over a year, this equates to a further debt of £8,060 on top of the £25,000 debt they retired with. These figures were pre-credit crunch: ClearDebt warn the situation could be much worse for those entering retirement now.

The research also revealed that Britons employed in the UK currently owe an average of 144% of their salary. This figure re-enforces an another news report confirming that people with the greatest debts in the UK live in suburbia.

-Ends –

Notes to Editors

Ends.
For advice on debt solutions, consumers can call ClearDebt on FREEPHONE 0800 0192 095
For further Information contact: Jacqueline Cohen on 07976 739 125, jacqueline.cohen@cleardebt.co.uk / Andrew Smith at andrew.smith@cleardebt.co.uk

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