Deepening debt levels, falling income and struggles with the rising cost of living. They are three factors affecting increasing numbers of over 55s in the UK, according to a study by the insurance group Aviva.
Increasing numbers of pensioners are now heading through retirement with unsecured debt with
one in seven over 55s never expecting to be debt-free.
Pensioner’s debts increasing sharply
The Aviva Real Retirement Report revealed that the average pensioner in debt now has a credit card
plus a personal loan of £5,893. They also go overdrawn by £2,202 on their current account every
month.
The survey, based on online interviews with 5,700 UK consumers aged over 55, also revealed that
one in three over-75 year olds have crippling credit card debts averaging £3,370 a head.
The Guardian reports that ‘Aviva has for the past year been tracking the incomes and lifestyles of the
over-55s, and paints a picture of deepening debt levels among the elderly as they struggle with the
rising cost of living and reduced earnings.’
Income for over 55s falling
The study found that the average over-55 year old now has a monthly income of £1,236, a fall of 4
per cent from just 12 months ago. Many pensioners are borrowing money or using their life savings
to pay for their lifestyle, the report found.
Average mortgage debt for over-55s rose by £10,000 to £65,107 over the last twelve months, while
the proportion of older households with less than £500 in savings jumped from 21 per cent to 30 per
cent.
Aviva ‘At Retirement’ director Clive Bolton said: “One in seven households can’t see a way out of
debt. The picture our report reveals is concerning, as while incomes have fallen and savings grown
smaller, mortgage debt has increased and inflation has hit key expenditure pressure points.”
