It should be a time to relax after a lifetime of hard work, but the reality is that millions of elderly people and those approaching retirement still have large debts, and with no pension and no savings they face a bleak future, research reveals today.
These figures show a worrying picture of a country with an ever increasing population of elderly people who simply have to keep working. A major study, from an insurance firm has found that two in ten people over the age of 55 are still paying off a mortgage. On average the size of their mortgage is £60,440 which takes a large part of their income each month.
The report shows how the elderly are having to rely heavily on credit much more than previously thought. Two out of every ten are forced to survive on an income of around £25 per day. Some even fail to take out household insurance which could be an expensive mistake. The report harshly shows how everyone will need to save and plan for retirement. The research illustrates the gap between those who planned for retirement by saving, having a private pension and also investments, and those who did not plan and now have nothing. It found 15% do not have a penny of savings or investments. There are a small percentage of well-off and well-prepared people who have done significant planning for the future. Sadly it seems that traditional retirement will not be possible in the future and future generations will have to work longer.
A spokesperson for debt charity Consumer Credit Counselling Service, said soaring numbers of its clients were older people. “We have seen a big increase in over-55s coming to us for help with their debts. They tend to be asset-rich but cash-poor which leaves them struggling to repay their debts. One of the big trends making it harder for people to save is having children later in life which means they often have dependent children who they are supporting through university as they are reaching their own retirement.”