No one wants to have to face debt in their retirement after a long working life, but unfortunately that's the case for many pensioners in the UK – something has to be done now to stop the elderly becoming too indebted.

EuroDebt says within its current client base of those over 60, almost one in three still have a mortgage and the average unsecured debt for these homeowners is just under £40,000.

Kevin Still, director of EuroDebt says: "The big question is what happens to these people if they are forced to retire? The analysis of our client base indicates a worrying trend, as more and more over 60s appear to be getting into serious debt, struggling to cope with the pressures of the recession. For some their savings have been hard hit as a result of the interest rate cuts and for others the prospects of living off the equity of their properties has diminished.

"The prospect of retirement should be a happy and relaxing time, after a lifetime of work. But our figures reflect that not only are some older workers going to stay on in their jobs for much longer, but for those forced to retire there are real concerns of managing their financial commitments."

EuroDebt says the figures for debt in the over 60s has gone up quite considerably since the recession really took hold – this age group is really struggling to keep on top of finances as their income has dropped and cost of living has risen.

If you are worried about your debts as you look to retirement, the sooner you can begin sorting them out, the better chance you have of being debt free by the time you leave work. Talk to a mortgage adviser about your secured loan, remortgage and equity release options. Your home is your most important long-term asset, but it's also your best chance of getting out of debt.

SOURCE: Eurodebt, 07/10/09

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