Pensions - Articles - Debt in retirement

 Comment from Vince Smith Hughes, Prudential, on the impact of debt for people retiring this year following the publication of the International Longevity Centre's report on debt and problem debt among older people.

 Vince Smith-Hughes, retirement expert, Prudential, said: "Debt in retirement remains a major issue. Our Class of 2013 research* shows that nearly one in five people planning to retire this year will have outstanding debts, averaging £31,200.

 "The average amount owed has fallen 18% since last year, suggesting people approaching retirement are making every effort to pay off their debts before they stop work. Mortgage liabilities have fallen but there's a greater level of unsecured debt - the majority of people retiring in debt this year owe money on credit cards.

 "Debt does not have to be a major issue for people in retirement as long as they have sufficient income, and realistic and manageable repayment programmes in place. Paying off debt as early as possible will help to ensure that retirees have more disposable income, in turn enabling them to enjoy a more comfortable retirement. There is plenty of free help and advice available through the Money Advice Service and Citizens Advice Bureau for those with debt issues."