Retirees sitting on £96.41bn of personal debts

New research from retirement income specialist MGM Advantage reveals that the average retired person has £8,180 of personal debt, collectively equating to a staggering £96.41bn.

Related topics:  Finance News
Millie Dyson
28th March 2012
Latest News
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
Over £100,000
178,000
None
6.776 million
Don't know
523,000


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.

Region

Av.amount of personal debt per retired person

Wales
£13,857
South West
£11,758
London
£11,255
West Midlands
£9,417
Scotland
£8,890
North West
£8,094
South East£7,390
Yorkshire and Humberside£7,353
North East£6,511
Eastern£4,759
East Midlands
£4,164

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