Workers heading for retirement of debt

Help the Aged claims that two-thirds of people approaching their pension have no plans to fund their care, which can cost around £21,000 per year.

However, the charity believes that poor debt management and financial planning is contributing to this figure.

“This research highlights the worrying extent of confusion among people who are at an age when they should be planning ahead, or at least thinking about what future care needs they may have,” Jonathan Ellis, senior policy manager at Help the Aged.

He blamed the government’s “complex system” for pensions for contributing to the confusion that could lead many to face a debt crisis when they retire.

In order to stop this, Help the Aged called for the government to make the pension system less complex, raise the savings allowance and abolish means-testing.