Brits ‘facing debt in retirement’

Figures released by Key Management Solutions has indicated British people are heading into retirement with debt management issues.

The study of people aged over 55 who have released equity from their homes found one-third are in the red, with collective debts totalling £66 billion.

One person in four has outstanding personal loan payments, owing an average of £8,766, while a fifth have credit card debt, averaging £8,358. Three per cent are into their overdraft, with debts of £3,667.

Dean Mirfin, business development director at Key Retirement Solutions, said: “As the cost of living is on the up, these figures, even if they are only part reflective of pensioners as a whole, are of real concern.”

He added people should be aware of approaching retirement with debt as the cost of living for the older people has exceeded the rate of inflation in the past ten years.

Earlier this month, Halifax has said people should seek advice for retirement planning, while Prudential warned a state pension is not enough.

By Morwenna Kearns