Study: 18% of retirees will be in debt

Posted by Emily Swanson

Many people planning to finish work permanently this year will retire with outstanding debts, new research has revealed.

According to a study published today (January 25th) by Prudential, almost one-fifth - 18 per cent - of individuals looking to retire in 2012 will do so with average arrears of £38,200.

The organisation's Class of 2012 investigation established that repayments on products such as mortgages and credit cards will cost retirees a typical sum of £260 per month once they have given up their jobs.

The overall figure of £38,200 also represents a £5,000 climb on that recorded in 2011, meaning the amount of debt individuals ending their careers are in is seemingly on an upward curve.

Vince Smith-Hughes, retirement income expert at Prudential, observed this is a sign of a lack of financial planning.

Recently, Aviva revealed that an increasing number of Britons are looking to tay in their jobs past retirement age. ADNFCR-2353-ID-801274186-ADNFCR

25/01/2012 12:15

News category: Employment

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