Charity warns over retirement debt
Published on 15 March 2012 12:00 PM
More people are facing 'extreme' levels of debt in retirement, a charity has warned.
The Consumer Credit Counselling Service (CCCS) said it has seen demand for advice among the over-60s surge by 15% in the last three years.
The group warned that this could be the beginning of a long-term trend, and said more must be done to help older people who are in need of debt advice.
CCCS chairman Lord Stevenson said 30-44 year-olds were currently the most likely to seek debt advice from the charity, but he expects almost half of those needing help will be over 45 in two years' time.
While many people in retirement are struggling to clear debts built up earlier in their lives, they are also affected by a faster rate of inflation than the rest of the population.
Age UK's latest Silver Retail Prices Index shows that the price of goods bought by over-55s has risen by 18% since 2008, 5% higher than for the rest of the population.
Lord Stevenson said: 'Around 12% of our clients aged over 55 have at least 30% of their incomes tied up in debt repayments.
'Work carried out for us last year by the Financial Inclusion Centre showed that there is a persistent minority of older people trapped with extreme debt. It would appear that this minority is growing rapidly.'
He added: 'We need to do more to help those in our society who need debt advice and solutions.'
Copyright Press Association 2012