According to research conducted by Prudential, 17% of people retiring this year will have debts outstanding, averaging around £24,800 each.
These startling figures give cause for concern but even more surprising is the fact that this figure is down on last years ‘class of’ study.
18% of people retiring last year had debts but the average debt amount owing was £31,200 in 2013 and was a shocking £38,200 in 2012.
The main source of debt remains to be credit cards and mortgages. Approximately 56% of those with debts owe money mainly to credit cards companies whilst 44% have not fully paid of their mortgages.
The proportion of retiring people with overdrafts has dropped from 19% to 16% whilst the amount of retirees with outstanding bank loans has dropped significantly from 21% to 14%.