Are you 1 in 5?
Recent research by the annual Prudential Class of 2018 has highlighted that debt has increased to such a level that now, 1 in 5 of us retire with debt to clear.
For lenders, this could mean reduced revenue and for those in debt, the dream retirement may be exactly that – a dream. So what’s happened?
It’s anticipated that those retiring in 2018 have debts of nearly 40% higher than those who retired last year – and the numbers are continually increasing. This is because the debt occurs during their working lives and workers struggle to repay the monies owed. Around 20% of workers take an average of £34,000 of debt into their retirement. As an average, we should remember that this is much lower for some, but conversely very much higher for others.
Repayment periods during retirement do range, but for many, this will take around 3 ½ years. This may not sound like an extensive period of time, but with debt levels trending upwards, this repayment period is likely to increase.
Much of this debt is related to mortgage repayments and credit cards although some of it can be attributed to the bank on Nan and Grandad! But it’s the mortgage and credit card bills that are the primary cause of debt.
If you are due in debt and struggling with repayments or you fear you could be carrying high levels of debt into retirement, we recommend seeking advice sooner rather than later.
Here at Sensible Debt Advice, we can help you plan and regain control of your finances. Don’t struggle in silence, talk to us on 01656 661426 or email us at email@example.com