Nearly 18% of those planning to retire this year will do so with outstanding debts, according to new figures released by Prudential. The class of 2012 research looks at the finances and expectations of those planning to retire this year, and found that the average amount owed by debtor retirees is £38,200.
Outstanding mortgages and credit card bills make up the bulk of the class of 2012’s debt. Half of those with debts owe money on their home loan and more than half are struggling with outstanding credit card bills.
On average, those planning to retire this year with debts will be making monthly repayments of £260, which equates to a fifth of their expected £1,290 a month income. In addition, men retiring in debt this year are likely to owe substantially more than women, with average debts of £45,300 compared with £29,400 for women.
Source: Prudential press release 25 January 2012