Over-55s may need to seek debt advice

People getting close to retirement age are acutely concerned about cost of living and tax increases, which may lead to them needing Debt Management Plans (DMPs) in the future.

Such are their fears about debt problems that over a third (35 per cent) of those questioned by Aviva said that they were more worried about tax rises than the death of their partner.

Clive Bolton from the insurance firm says that the over-55 age group's "relatively fixed incomes" mean that they are more likely to suffer financial problems caused by any sudden increases.

Indeed, over the course of the survey, the average income for the age group fell slightly to leave it nearly a third (31 per cent) down on the average UK household income of over £1,800 (£1,855).

Kevin Still, director of Atlantic Financial Management, says: "Many over-55s in the UK still have significant levels of unsecured borrowing, including credit card debt, that they will still be paying off when they retire.

"Loss of income is the primary reason for people starting a Debt Management Plan (DMP) with Atlantic Financial Management and when the average level of unsecured debt is over £29,000 with over 8 creditors then self-management is often not an option."

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