UK pensioners ‘failing to clear debt’
Britons are increasingly unlikely to clear debt accrued before they retire, it has emerged.
Figures published by Scottish Widows show that a fifth of retired homeowners are still repaying their mortgage.
And one in three also have outstanding personal debt payable on unsecured loans or credit cards.
The average balance left to pay on a mortgage is £38,000, while the average debt from other sources is £5,900, the study found.
Ian Naismith, head of pensions market development, advises: “By the time they come to retire a significant number of pensioners still have a mortgage outstanding on their property.”
He urges borrowers “to consider how best to prepare themselves for the eventuality of having to juggle their debts on a reduced income when they stop working”.
Norwich Union previously suggested that pensioners should consider their financial situations on an individual basis, rather than adopting a “one-size-fits-all” approach to clearing their debts.
Expert advice could assist many Britons looking to clear debt ahead of their retirement.
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