- Thursday, 27 August 2009The number of UK retirees entering into an
individual voluntary agreement could increase as a result of burgeoning debt levels.
According to the latest Scottish Widows UK Pension Report, debt among Britain's elderly is increasing while overall debt is falling.
The report suggests that 1.35 million retirees still have a mortgage, with the average outstanding mortgage debt standing at £50,100.
Furthermore, the average non-mortgage debt among the elderly in arrears is £7,344. In 2007, this figure stood at £5,930.
Ian Naismith, head of pensions market development, said: "The situation for retirees in debt is not getting any better, and an increase of eight thousand in the average amount of mortgage debt is alarming.
"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."
RBS recently faced criticism when it revealed it planned to cap thousands of employees' pension plans.
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