More retirees with loan debt

Despite the common assumption that retirement is a time of life when an individual finally have no financial problems and can live the rest of their life with a clean state, without the need to keep up with any loan repayments, a large number of people in UK are likely to enter retirement age with loan debts, a recent study has revealed.

The study carried out by the Prudential has shown that about 20 per cent of people who are entering retirement age in 2011 will have debts on different types of loans and credit cards.  It appears that the average personal debt level across the UK is about £33,100 per capita.

Furthermore, 5% of people entering retirement this year will be left with loan and card debts of nearly £50,000. Naturally, many people are not confident in their ability to sort out their finances.

The study has also revealed that men (23%) are more likely to spend their retirement income on clearing loan debts than women (18%).


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The cultural transformations that have made people accept life in debt have had a direct impact on the approach youngsters take to money matters, which could lead to negative consequences in the long run as many of the next generation would resort to IVAs to cope with serious financial issues.

When we put efforts into our work and get paid for this, we get an amazing feeling of satisfaction. Our hard hard work seems to have been remunerated financially. We go shopping and buy the items we need and the items we simply want.