One in five planning to retire this year will have debts
28 January 2015
- Class of 2015 study shows those entering retirement with debts have an average of £21,800 outstanding
- The average amount owed by retirees in debt has fallen for the third year in a row
- Nearly one in ten say that it will take them nine years or more to clear their debts
Almost one in five (19 per cent) of those planning to retire this year will do so with debts outstanding, averaging £21,800, according to new research from Prudential1.
The insurer’s Class of research into the future plans, finances and aspirations of those planning to retire in the next 12 months is now in its eighth year. This year’s results show that the Class of 2015 are more likely to retire in debt than those who gave up work last year – (17 per cent of those retiring in 2014 said they would have debts outstanding when they retired, compared with 19 per cent this year).
Prudential’s research has tracked retiree debt since 2011 and shows that despite some small fluctuations, the proportion of those retiring with debts outstanding has remained consistently around the one in five mark. There is a noticeable trend though that retirees’ average amount of debt has reduced over the years.
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