Nearly one in five of those planning to retire this year will do so with an outstanding debt average of £38,200 according to Prudential’s Class of 2012 research.

Prudential found that the average amount owed by retirees has increased by more than £5,000 from last year’s figure of £33,100 with many retirees looking to pay monthly repayments of £260. This is despite the proportion of people retiring in debt falling from 20 per cent to 18 per cent.

Furthermore, research revealed that male retirees in debt this year will have to repay a significant amount more than women. £45,300 will have to be paid by men compared with £29,400 for women highlighting the fact that more effective and efficient financial planning is needed if debt levels are to be reduced or even eradicated.

Prudential’s retirement income expert Vince Smith-Hughes said that debtor retirees can seek help through a financial adviser at the Money Advice Service or at the Citizens Advice Bureau. In addition he highlighted that it is important “for those still at work to save as much as possible as early as possible.”

Share Story: