Prudential says that over a million retirees have an average debt of £15,500 and 70,000 have a debt as high as £75,000.
Most worryingly, a quarter of pensioners say that they lack the funds to repay debt and other financial commitments.
“Debt affects people of all ages but it’s harder for retired people to get out of the debt cycle as many don’t have any way of boosting their income through working overtime or being promoted at work,” warned Angus MacIver, Prudential UK director .
His comments follow warnings from the minister for pensions reform, James Purnell, who said earlier this month that many people face a retirement of debt unless they take action now.
Mr MacIver said that there are ways to help prevent this, with proper consultation or by taking financial advice.
But without these actions, a large amount of Britain’s current and future pensioners look set for a retirement of debt rather than enjoying a time of leisure.