UK pensioners sit on £97bn personal debts

Wednesday 28th March 2012

The average retired person has £8180 of personal debt, collectively equating to a staggering £96.41billion, according to research from retirement income specialist MGM Advantage.

The average level of personal debt for a retired man is £9007, compared to £7350 for a retired woman.

Around 178,000 retired people each owe £100,000 or more, and just over 729,000 owe between £25,000 and £100,000. Only 57% of the retired population has no personal debt.  

Aston Goodey, Director, MGM Advantage said: "These figures are alarming. As the cost of living continues to put pressure on household finances, many retired people will feel under growing pressure to take on debt to fund everyday living.

"There are things you can do to minimise the chances of funding your retirement through debt. It is vital that people shop around for the best annuity rate to maximise the income they receive.

"The difference between the best and worst rates can be as much as 50%. People should also make sure they are claiming all of the State benefits to which they are entitled and also ensure that they have accounted for all old savings accounts and pension plans."

On a regional basis, the average retired person in Wales has personal debt of £13,857, which is the highest in Britain. This is followed by £11,758 in the South West, and £11,255 in London.

Have your say on this story using the comment section below

Mike Jones