Over 65s predicted to amass £86bn in debt this year
Recent research suggests that total debt for over 65s will reach £86 billion in 2018.
Commissioned by more 2 life, the findings from the Centre for Economics and Business Research show a significant increase from last year’s figure of £78 billion.
The research from 2017 forecasted that during that year total debt for this demographic would only reach £65 billion, an underestimate of around £13 billion.
It’s a similar story for the level of debt on an individual basis; on average, the research showed that the total debt for someone aged between 65 and 75 was £15,700 – higher than the predicted figure of £12,500.
Commenting on the figures was CEO at more 2 life, Dave Harris. He said: “Our estimates show that the retirement lending market is growing even more quickly than previously expected and looks likely to surpass the £142bn mark by 2027. This rapid increase will only be exacerbated by an ageing population, people buying houses at a much later stage, and shrinking pension pots resulting in low retirement incomes. For growing numbers of people aged 65 and over, financial products that draw on the resource of housing wealth may well turn out to be the optimal way for them to solve the financial challenges they and their families have to face in future.
“Our industry is perfectly positioned to seize this opportunity and deliver the best possible financial outcomes to cater for this growing consumer need. As such, we must rise to the challenge and ensure the needs of consumers are being catered for.”