A fifth of this year’s retirees will leave the workforce with debts averaging £31,200, according to recent Prudential survey results reported in the Telegraph.
That figure is more than double the retirees’ expected annual income of £15,300.
But it is also significantly lower than the level of debt faced by last year’s retirees, which was £38,200 on average.
More than half (56 percent) of those who will retire in debt this year will owe money on credit cards, 43 percent will owe on mortgages and 19 percent will owe on overdrafts.
More Britons overall are retiring with their mortgages paid off.
“The fall in average debt owed by this year’s retirees is a welcome sign that people are paying off some of the money they owe before they stop working,” says Vince Smith-Hughes, retirement income expert at Prudential.
“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.”
Information for this post was taken from an article in the Telegraph. Read the original article here.