The debt burden on pensioners in the UK is rising rapidly, with a third in the red because of loans and unpaid credit card bills, according to a survey by Scottish Widow.

Pensioners with outstanding non-mortgage debt owed an average of £7,344 - £612 more than those who took part in the same poll a year ago.

15% of retired people were still paying off their mortgages, with an average debt of £50,100, up from £42,100 a year ago.

The survey also found that some adults were still relying on their elderly parents for financial support, with 7% of retirees paying towards the upkeep of their grown-up children.

“The situation for retirees in debt is not getting any better, and an increase of £8,000 in the average amount of mortgage debt is alarming,” said Ian Naismith, head of pensions market development at Scottish Widows.

“The recession has seemingly done nothing to encourage retirees to cut their debt, and with the possibility of the value of their property dwindling, they could be leaving themselves in a vulnerable position.

“Those in retirement should be able to enjoy life and not worry about the financial burden of debt, as well as their retirement income.”

The survey also found that those approaching retirement were also saddled with debt, with 43% still paying off a home loan. However, the average mortgage debt dropped slightly from £58,300 to £57,000.

This entry was posted on Friday, August 28th, 2009 at 9:46 am and is filed under Loans, Mortgages, Retirement. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.