Changing demographic and lifestyle factors in the UK have led to an increase in the number of people in the UK approaching retirement age with outstanding mortgage or unsecured debt (e.g. outstanding credit cards). More 2 life’s recent ‘2019 Later Life Lending Report: Retirement Debt’, shows that for the over-65s, the total value of debt held amounted to £91billion in 2019, compared to £86billion in 2018. Further projections suggest these levels will increase by 117% in 2029, reaching a total of £199billion within the next decade.
In total, it is estimated that over 55s will owe £548billion by 2029. Based on figures from the Office for National Statistics, this means that those aged 65 and over currently in the UK, will each be £16,500 in debt within 10 years.
It is not just mortgage debt that is rising among those aged 55 and over but also the level of unsecured credit debt is increasing. Whilst this may be part of a deliberate cash flow planning strategy for some, this research shows that more and more are taking on and retaining debt simply to make ends meet, not understanding the repayment plan and timeframe or not managing their cash flow effectively.
What we can do for you?
At Philip J Milton & Company Plc we can advise on all aspects of your finances and help you to achieve your financial aims and objectives in retirement, which could involve cash flow planning prior to retirement to reduce debt and perhaps assist in accumulating more savings to allow you a more comfortable retirement. We can review your current monthly expenditures and may be able to highlight where you could save some costs, allowing you surplus income to then repay debt or save for the future. If you would like a professional input into your finances or to discuss your future retirement planning, then please do contact the office to arrange a mutually convenient no obligation appointment with one of our highly qualified advisers.