Tuesday 29th of June 2010
Individual voluntary arrangement (IVA) questions may show older workers that it is possible to afford the cost of living once they’ve retired, even if they have large unsecured debts with which to contend.
Data from Scottish Widows reveals the number of people saving up for their pension has dropped by six per cent compared to last year, with one-fifth of those who could and should be filling their coffers not doing so at all.
If money owed on personal loans and credit cards are hampering your ability to add cash to your retirement fund while you are employed, asking questions on IVAs could help you start the ball rolling in cutting your debt.
This is because IVAs might help you use your income, which was previously stretched to its limit, for boosting your nest egg, as they freeze the interest on unsecured debts worth more than £15,000 over a period of around five years.
Ian Naismith, head of pensions market development at Scottish Widows, comments: "Now we are seeing the full impact of the downturn on people’s retirement pots."
By Kimberley Parsons
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