Nearly one in five of those retiring this year will do so with outstanding debts to pay off, figures released by Prudential have revealed.
The average debt for these retirees amounts to £38,200, with outstanding mortgages and credit card bills making up the bulk of the debt.
Repayments will make a £260 dent in retirees monthly incomes, the equivalent of a fifth of their retirement income, the survey claims, and retirees could spend an average of four years paying them down.
The figures highlight a need for prudent financial planning. Commenting, Vince Smith-Hughes, Prudential’s retirement expert said: “Retiring with outstanding debts could be a sign of a lack of financial planning. It is important therefore for those still at work to save as much as possible as early as possible, and to consult a financial adviser to help them plan for a comfortable retirement.”
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