Too old to work but too much in debt to retire
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Following the failure of a High Court appeal against the mandatory retirement age debt management specialist EuroDebt is warning that older workers forced into retirement could face serious problems.
Analysis of the company’s client base shows that of those over 60, almost one in three still have a mortgage and the average unsecured debt for these home owners is close to £40,000.
“The big question is what happens to these people if they are forced to retire,” EuroDebt director Kevin Still told Chatroom. “Our analysis indicates a worrying trend as more and more over-60s are getting into serious debt and struggling to cope in the recession.
“For some, their savings have been hit by interest rate cuts and for others the prospect of living off the equity in their homes has diminished.”
The company says it has thousands of client couples for whom at least one partner is over 60 and either retired or facing the prospect of retirement. For these clients, the average level of unsecured debt is just over £28,000 owed to seven creditors.
And for couples who are both over 60 with mortgages, the average unsecured debt is £40,000 owed to nine creditors.
