You are here: Home - Uncategorized -

Pensioner mortgage debt averages £38,000

0
Written by:
13/08/2007

20% of retired homeowners are still paying off their mortgage, with the amount outstanding averaging £38,000. One in eight pensioners owe more than £50,000 on their homeloan, and a third also owe money on credit cards, with the average balance weighing in at £5,900.

According to research from Scottish Widows, the total debt held by UK pensioners adds up to £57 billion.

Ian Naismith, head of pensions market development at Scottish Widows, said that these debts were “adding financial pressure to [pensioners’] hard-earned retirement funds”, and advised:

“It is important for those people who will be reaching retirement in the next few years, and still have debt outstanding on their mortgage, to consider how best to prepare themselves for the eventuality of having to juggle their debts on a reduced income when they stop working.”

The research also revealed that one in 12 retired people still has at least one financially dependent child, with almost a third of these offspring over the age of 18, and 16% over the age of 35.

With so many demands on their limited income, pensioners have a modest take on what it means to be ‘well-off,’ citing annual income of £27,700 as sufficient to put them in this category. That compares to the nation at large, which deems earnings of £36,300 to mean ‘well-off’.

The average retiree’s annual household income is £22,900.

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
FTSE drops as global markets fall

The UK’s leading stock index fell 1.83% yesterday as ongoing concerns about global credit markets shook investor confidence on both...

Close