CompaniesMay 13 2013

UK retirees have collective debt of £105bn, MGM

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ByDonia O’Loughlin

The UK’s retirement nation collectively manages mortgage and portfolio debt to the tune of £105.5bn with 13 per cent of retirees managing mortgage debts totalling £76bn, data from MGM Advantage has revealed.

The research, conducted online by Research Plus who polled over 2,000 over 55’s, also revealed that 34 per cent of retired people are managing loans, overdrafts and credit card debts worth a cumulative £29.5bn.

Some 66 per cent have no debts, whereas 34 per cent of retirees each have an average of £6,952 personal debt, and 70 per cent of those people managing debts of £5,000 or less with the remainder managing debts of £5,000 or less.

The research also shows that 6 per cent of retired people aged 55 and over are working part-time to supplement their incomes in retirement.

Around 70 per cent own their own homes outright with no mortgage, while 16 per cent live in rented accommodation, 2 per cent of retirees live with family or in other types of accommodation, while 13 per cent own their property with a mortgage.

Andrew Tully, pensions technical director at MGM Advantage, said: “These figures are alarming and show the pressure people face on a daily basis trying to balance the household budget.

“Although many people consider themselves retired they are continuing to pay off their mortgage, some with quite substantial balances. Dig a little deeper and many people are working part time, sometimes through choice but often simply to make ends meet.

“Talking about debt in retirement will be a taboo for many people who find themselves in this position. But there are ways retirees can access practical help and advice.”