Majority of over-50s in debt, survey shows

Over half of the British population aged above 50 have debts aside from their mortgages, new research has revealed, with the average amount owed nearing £7,000.

Findings from a study by moneysupermarket.com indicate that, while 17 per cent of over-50s have managed to reduce their non-mortgage debts in the last year, 22 per cent of those in the UK have taken on more over the last 12 months.

Head of loans and debt at the company Tim Moss noted that the decrease in the amount owed is encouraging, although “the fact that half of the people in this age group are still in debt above and beyond their mortgages is alarming”.

He added that people over a certain age need to consider how long they will be continuing to earn and must look at how they can afford to live during their retirement so as to avoid debts becoming “a millstone around their neck”.

Mr Moss’s comments follow statistics from Scottish Widows, which suggested that retirees are the hardest hit by the recession, with 21 per cent cutting their savings in the last year and using their lump sum payments from work to pay off debts.

Earlier this year, debt solutions experts ClearDebt released their own report, confirming people with debt worries are retiring with an average debt of £25,000
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By Sarah Adie