Almost one in five of those planning to retire this year will do so with outstanding debts, according to a Prudential report issued today. Its report showed the average amount owed by people retiring in 2012 will be £38,200 – up from £33,100 in 2011. At least 50% of these retirees will owe money on their home loan and/or will still have outstanding credit card balances.
Prudential’s Class of 2012 research also revealed that people who are due to retire in 2012 are expected to have a lower retirement income than people who retired in the previous 5 years.
Vince Smith-Hughes, Prudential’s retirement income expert, said: “With a manageable repayment programme in place, debts need not become an issue for this year’s retirees – and there is plenty of help available through the Money Advice Service and Citizens Advice Bureau.
“Retiring with outstanding debts could be a sign of a lack of financial planning. It is important therefore for those still at work to save as much as possible as early as possible, and to consult a financial adviser to help them plan for a comfortable retirement.”