Pensioners fall further into debt

The UK’s retired population is struggling to survive on their pension income, according to a recent survey by Age UK.

The charity for older people found that one in five of those aged over 60 owed money on a mortgage, a credit card or a loan. A further 11% of those surveyed need to borrow credit in orderly meet mortgage repayments or rent.

Of those who owe money, one fifth is concerned about their ability to tackle their mounting debts.

The squeeze on pensioners’ budgets has been attributed to a number of factors, including a low return on savings, and the rising cost of living. The government’s quantitative easing measures are also said to have damaged annuity rates.

According to Age UK, 1.8 million pensioners are currently living in poverty. The charity also revealed that pensioners are missing out on £5.5 billion in benefits, which go unclaimed each year. To further add to retirees’ money woes, 1.6 million pensioners fail to take up their Pension Credit entitlement.

Michelle Mitchell, charity director general at Age UK, has said that the situation facing pensioners is extremely concerning.

“It is extremely worrying that such a high number of older people report having debts and have had to borrow money just to keep a roof over their heads. Most older people live on relatively small incomes so making debt repayments can be a worry,” she said.

“Far too many older people are living in poverty and the Government must continue to work proactively on ways of getting money to older people who are in desperate need.”

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Posted by: WarrenWilson Categories: Finance Tags: , 3 Comments

3 Responses to Pensioners fall further into debt

  1. avatar Audrey Lee Thornton says:

    We are trying to downsize and had hoped to repay Aviva for an equity release taken out in 2002. Apart from the compound interest of more than50% of the original loan they want a 44K early repayment charge!!This would leave very little, so we’re bound to transfer the loan to the cheaper property

  2. avatar keith brett says:

    we are in that 1.8 million category. Due to a stroke at 56years i had to take my pension early (private0 For 10yrs I have been trying to cope with a large Mortgage and £70,000 debts i accrued as I had no help for the first two years with my £186k mortgage. Whilst I had critcal illness insurance this was used to support our everyday bills & exspensive mortgage, and help us survive Throught this poverty. the futer is non exhistent for smeone who worked a min 70hrs a week where all the help for us, perhaps we were born in England thats our only error it would seem.If I feel sorry for myself maybe but I dont appologise for that, my wife is also dissabled since her 16th due to NHS errors. the fact that millions are worse off than us does’nt help only that we can’t do anything to help them.
    Someone wake this and future Goverments up to the help needed in this country first, before it too late for us and future generations.

  3. avatar Chris Rodges says:

    It’s funny my parents who have retired to Ireland believe the Goverment gives them to much. They have an endless list of allowances they can claim for. I wonder is that is why Ireland are in such a pickle. Also Ireland is the place to be if you don’t want to work. 185 Euros per week + rent allowance. Why work. Who are the mugs, us.