Retirement could be a long way off for some older consumers

 

April 22, 2008

A shocking and disturbing recent report has revealed that many of Britain’s older generation who are now nearing retirement age could find that they are not able to afford to retire when the time comes, leaving many having to work well into their seventies in order to repay debt and avoid struggling financially in what should be their golden years. It is estimated that today’s consumers who are in their late fifties and early sixties have debts amounting to four time the amount that the same age group had ten years ago, and this has seriously affected their ability to be able to retire at the traditional age.

In a study that was carried out by the charity Help the Aged it was shown that people aged between 55 and 64 were increasingly likely to have to continue working after their retirement age, and many would have to work well into their seventies in order to try and deal with their debts. Although the average debt per person in this age group is only around £2500, officials have said that those on a fixed income can find it very challenging to try and repay this debt quickly.

Around one in every four people aged between 55 and 64 are though to be credit users according to the study. Officials state that those within this age group are the first generation to have been brought up in a culture where spending rather than saving has been encouraged. One official stated: ‘This report shows there are some worrying trends in credit usage that could represent a debt crisis for those coming up to retirement.’

He also added: ‘We know from working with older people suffering from chronic debt problems that even owing a relatively small amount of money can cause untold misery for those living on a fixed income.’

For most people in their fifties retirement age is something to look forward to, as it means an end to the commitment of having to go to work and give them a chance to enjoy life by travelling, spending time with loved ones, and having the time to pursue their hobbies and interests. However, for those in debt this is a life that is a long way off, as they cannot afford to enjoy life and cannot afford to retire when they are saddled with debt. The situation is even worse for those that have put very little away towards their retirement years, as they will already have little enough money to live on without the additional burden of trying to pay off their debts.

The reports also showed that even today around 1.3 million men and women who have reached retirement age are still in work. One industry official said: ‘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.’

Recent Additions:

Written by admin · Filed Under Featured 

Comments

Got something to say?