Pensioners ‘increasingly affected’ by debt

An increasing number of pensioners are in debt when they retire, it has been claimed.

Data from Just Retirement has found being in debt when reaching retirement age is affecting 24 per cent of those surveyed, while 26 per cent of people nearing retirement are worried about the level of debt they will be in when they stop working.

Head of retirement solutions at Just Retirement Nigel Barlow explained that pensioners need to be aware of methods they can use to maximise their income when they stop working.

“Retirees can bolster their income by getting the most out of their pension fund by shopping around for the most attractive annuity rate,” he explained.

Mr Barlow also urged those worrying about their finances to seek advice, an option which those looking to become debt free may wish to consider.

Age Concern recently urged the government to take more action to help pensioners, warning that they are at risk of becoming “hidden victims” of the credit crunch.

By Tom Musk