Thursday 27th of August 2009
The average unsecured debt which Britons in retirement owe is £7,344, new statistics show, which could require the help of a debt management plan.
Indeed, the figure represents a rise from the £6,732 recorded in 2008, while unsecured debt of those in retirement stood at an average £5,930 in 2006, the research for Scottish Widows reveals.
Households in this situation could find a debt management plan to be of assistance. As well as reducing the interest on unsecured credit, a debt management plan may also extend the repayment period of debt, which could take some of the pressure off cash-strapped retirees.
When added to the amount owed on a mortgage, individuals in retirement in the UK owe £90.4 billion, a rise from the £72.3 billion in 2008.
Commenting on the survey, Ian Naismith, head of pensions market development at Scottish Widows, said: "Those in retirement should be able to enjoy life and not worry about the financial burden of debt, as well as their retirement income."
A recent study by MGM Advantage found that almost a quarter of over-55s claim they will have to work past the statutory retirement age in order to shore up their finances.
By Rachel Powell
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