Long way to retirement for today’s older generation

 

April 11, 2008

A recent report has shown that many of today’s older generation could end up being unable to retire at the traditional retirement age, and may have to work well into their seventies in order to be able to afford to live and repay their debts. Around one in every four people aged between 55 and 64 have been identified as credit users, and the average debt per person in this age group is estimated at £2500.

Although the debt level per person is on average not all that high industry officials state that it is difficult for many people to speed up repayment of their debts when they are on a fixed income. Already, there are around 1.3 million men and women in work who have already reached and passed retirement age, and this is a situation that could get worse, as older consumers struggle to pay their debts off.

One industry official recently stated: ‘These figures highlight the crippling reality of the situation. This problem will not go away. It will stay with us for decades and could deteriorate further. Retirement is no longer viewed as a welcome relief; many see it as a financial battle, where they cannot possibly hope to be the winners.’

Another said the trends relating to credit use were worrying, stating: ‘This report shows there are some worrying trends in credit usage that could represent a debt crisis for those coming up to retirement.’

It is though that those within this age group now owe four times as much in debts as those of the same age group ten years ago, and this is thought the be the first generation to have been brought up with a spending rather than saving attitude.

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Written by admin · Filed Under Banking, Debts 

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