Retirees in the UK owe £105bn, according to research by annuity specialist MGM Advantage. It found that four million retirees, more than a third of all pensioners, have personal debts, with an average of £6,952, while one in eight (13 per cent) are still paying off mortgages. Outstanding mortgage debt averaged £47,458, with ten per cent of those owing more than £100,000.

MGM Advantage pensions technical director Andrew Tully said: “These figures are alarming and show the pressure people face on a daily basis trying to balance the household budget. Although many people consider themselves retired they are continuing to pay off their mortgage, some with quite substantial balances. Dig a little deeper and many people are working part time, sometimes through choice but often simply to make ends meet.”

Six per cent of retirees aged 55 or over work part time to supplement their income, according to the research.

The collective debt of retirees amounted £29.5bn outstanding in loans, overdrafts and credit cards, with £76bn in housing debt.

Despite this, home ownership among retirees remains above average. According to the research, 70 per cent of retirees own their own homes outright with no mortgage and another 13 per cent with a mortgage. Across England and Wales as a whole, home ownership is 64 per cent, according to the Office of National Statistics.

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