Average pensioner has £36k debt

The average amount of debt owed by a pensioner is £36000 with the vast majority struggling with funding their retirement.

Half of people aged over 65 who take out an equity release plan owe money on mortgages, credit cards and loans, with their borrowings averaging £35,991, according to Key Retirement Solutions.

27% of pensioners taking out further finance also had an existing mortgage averaging nearly £46000.

Poor performances on pensions and endowments has meant pensioners have had to extend mortgage deals and in some cases continuing work past the retirement age.

20% of retired people releasing equity from their home had credit card debts of around £9,000, while one in five had outstanding loans averaging £10,447 and 3% had an overdraft of £4,290.

Overall, the group said the average pensioner who had taken out an equity release plan with it spent £297 a month on debt repayments, the equivalent of nearly 30% of their income.

The research, which was based on 3,501 customers, found that older pensioners were more indebted than younger ones, with the over 70s owing an average of £40,958, compared with debts of £29,314 among those aged between 65 and 70.

If you are into retirement age and need advice on how to deal with mounting debts and pressure from creditors then speak to one of our professional and dedicated staff on 0844 822 0845 today.