Baby-Boomers Expect to Die in Debt
The over-55s, the Baby Boomer generation, are struggling to clear their debts before retirement, a new study reveals.
The Real Retirement Report by Aviva showed one in seven of this age group expects to never be debt-free.
A further 23 percent admit they do not expect to be debt free until they reach 75 years old, while 15 percent said they never expect to repay what they owe.
“While there isn’t one single cause for people’s money worries, the combination of economic and social factors over the last year has impacted on many individuals’ plans for their retirement years,” said Clive Bolton, Aviva spokesman.
“We would urge people to think about their retirement sooner as life expectancy figures indicate more of us will be living longer and we will need to increasingly provide for ourselves.”
Credit card debt is the most prevalent form in the third of over-55s who have at least one form of unsecured debt.
Thirty percent of this age group do not clear their credit card debt each month, while 13 percent do not keep up with personal loan repayments, and 10 percent are unable to clear their overdrafts.
The average amount of debt on a personal loan is £5,983 with the average owed on a credit card standing at £3,311.
Most over-55s blame the high cost of living as the main reason they are struggling with debt, with 29 percent claiming they had borrowed in the first place to afford an essential purchase. A further 18 percent claim being unemployed was a hindrance.
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