Could retirement shocks result in need for debt help?

Professional debt advice could be needed by people in retirement as it has been suggested that many financial strains come after working life has finished.

Research conducted by LV= found that 17 per cent of people suddenly needed to help family members out financially within the first five years of retirement.

A further 34 per cent welcomed a grandchild into their lives, while six per cent found themselves widowed or bereaved.

These are all events which could put an unexpected strain on a pensioner's financial provisions for retirement and could push them towards using credit.

Professional debt solutions, such as a Debt Management Plan (DMP), could help people to regain control of their delicately balanced retirement funds.

Matt Trot, head of annuities at LV=, commented: "Many people associate retirement with taking things easy and relaxing. However, it is a time when major step changes in their lifestyle can take place."

Kevin Still, director of Atlantic Financial Management, commented: "As the recession has progressed approaching retirement appears to be a major source of financial stress with under performing pension funds and inadequate life savings.

"Loss of income is a major cause of debt problems and many pensioners still have significant unsecured debts at the time of retirement. Many have to continue working to make ends meet."

Categories; Retirement Money Problems,