Almost a quarter (23%) say they don’t expect to be debt-free until they are at least 75 and one in seven (15%) say they expect never to repay what they owe.
Almost one third of over-55s (30%) have at least one form of unsecured debt that they are unable to clear currently, and one in five (21%) are still making mortgage payments.
The Aviva quarterly report reviews the finances of the three different ages of retirement – pre-retirees (aged 55-64); retiring (65-74), and long-term retired (75 and over), examining how the finances of these age groups have been affected by the economic landscape of the last year and how this has led them to economise in other areas.
The report found that over the last year, average incomes have fallen by 4%, mortgage debt has risen by over £10,000, and the number of households with savings pots of less than £500 has jumped from 21% to 30%.
Commenting, Clive Bolton, ‘at retirement’ director at Aviva said: “The fifth Real Retirement Report provides a valuable opportunity to look back at how the finances of the over-55s have changed over the last 12 months. The picture it reveals is concerning, as while incomes have fallen and savings pots grown smaller, mortgage debt has increased and inflation has hit key expenditure pressure points.
“However, this age group is slightly more optimistic than they were about the rising cost of living over the next five years than they were in 2010, possibly because they have experience of living through a recession in the past. And with the UK economy showing some signs of recovery, the future is brighter than it might appear.”
