Good news- pensioner debt is decreasing
Research carried out by Prudential has found that the average amount of debt held by pensioners has decreased for the second year in a row.
- Those retiring in 2014 owed an average of £24,800 each
- Those retiring in 2013 owed an average of £31,200 each
- Those retiring in 2012 owed an average of £38,200 each
Around 56% of those retiring this year owe money on credit cards, while 44% still have a mortgage. The average debt repayment is £220 a month. However, 25% say that their monthly repayments will be over £400, and 18% expect that they will take over 7 years to clear their debts.
If you want to ensure that you have a good retirement income, it is best to start saving as soon as possible. The full basic state pension is currently £110.15 a week, so if you need more than this, you will need some savings of your own.
Your employer may have a scheme that you can join, and it is a good idea to do so as your employer may pay into it for you. All employers, starting with the largest first, will eventually have to have a scheme that their eligible employees can join. This is called 'automatic enrolment - click here to read more about this on our website.
If your employer does not have to do this yet, you could start your own pension. To read more about this on our website, click here.
Our mission is to make pensions accessible to everyone, so if there is anything you do not understand, please contact us and we will explain it to you. To discuss any pension-related issue: