Debt in Retirement Increases
Posted on 27 August, 2008 at 15:52 by Peter Kelly
The number of Brits who could be retiring in debt is on the increase. A study by Key Management Solutions shows that one-third of those who have released equity in their home are facing debt problems, with debt levels totally £66 billion.
A quarter of those who are struggling with finances owe almost £9,000 in unsecured debt, through credit cards, overdrafts and loans.
What makes matters worse is that more than two million pensioners are now worse off due to the credit crunch and rise in inflation. The Conservative party believe that more will have to seek debt advice as any rise in pension credit is cancelled out by inflation.
Shadow Chancellor, George Osborne, claims that inflation for pensioners is between 5.2% and 5.6%, meaning that a couple will lose £98 this year and a single pensioner £90.