Retired nation is sitting on £96.41 billion of personal debt
- Average retired person has £8,180 of personal debt
- 178,000 retired people have personal debts of £100,000 or more
New research1 from retirement income specialist MGM Advantage reveals that the average retired person has £8,180 of personal debt, collectively equating to a staggering £96.41billion. The average level of personal debt for a retired man is £9,007, compared to £7,350 for a retired woman.
Around 178,000 retired people each owe £100,000 or more, and just over 729,000 owe between £25,000 and £100,000. Only 57% of the retired population has no personal debt.
Amount of personal debt
Number of retired people
|Between £1 and £5,000||2.486 million|
|Between £5,001 and £25,000||1.094 million|
|Between £25,001 and £100,000||729,000|
Aston Goodey, Director, MGM Advantage said: “These figures are alarming. As the cost of living continues to put pressure on household finances, many retired people will feel under growing pressure to take on debt to fund everyday living.
“There are things you can do to minimise the chances of funding your retirement through debt. It is vital that people shop around for the best annuity rate to maximise the income they receive. The difference between the best and worst rates can be as much as 50%2. People should also make sure they are claiming all of the State benefits to which they are entitled and also ensure that they have accounted for all old savings accounts and pension plans.”
On a regional basis, the average retired person in Wales has personal debt of £13,857, which is the highest in Britain. This is followed by £11,758 in the South West, and £11,255 in London.
Average amount of personal debt
per retired person
|Yorkshire and Humberside||£7,353|
|Northern Ireland||*Sample size too small to report|
Here is a checklist of things for people to consider when making important decisions at retirement:
1. Claim all state benefits to which you are entitled, to check, go to www.direct.gov.uk
Data3 suggests that pensioners are missing out on up to £5 billion a year in unclaimed pension credit, housing and council tax benefits, as well as attendance and disability living allowances.
2. Keep a track on any old personal or occupational pension arrangements, if you think you might have lost track of an old pension arrangement, you can check via the Department for Work and Pensions tracing service here http://www.thepensionservice.gov.uk/
3. You can check if you have any old savings accounts which you might have lost touch with over the years by going to http://www.unclaimedassets.co.uk/
4. Don’t just accept the annuity rate offered by your pension provider. You should shop around for the best rate and you might qualify for an enhanced rate for pre-existing medical conditions
5. Seek professional financial advice as this will help you get the best product and rate for your individual circumstances, to find an independent adviser go to http://www.unbiased.co.uk/
6. You may have old National Savings accounts or Premium Bonds, to check for unclaimed prizes please go to http://www.nsandi.com/files/asset/pdf/Tracing_brochure_v03.pdf
For further information contact:
Paul Keeble 07833 085387 email@example.com
Citigate Dewe Rogerson
Jamie Brownlee 020 7282 2858
Charlotte Pascal 020 7282 1021
Phil Anderson 020 7282 1031
1. Research was conducted online by Research Plus between 7th and 17th October 2011 with 2086 UK adults aged 55 years and over, including 1261 retired people for the report: Our Retirement Nation. The research uses the estimated figure of 11.786 million retired people in the UK. This was commissioned by MGM Advantage. For further details please go to our Retirement Nation pages
2. Source: MGM Advantage Annuity Index.