According to research from independent financial adviser Key Retirement, a fifth of all UK’s over 65s have borrowed money or expect to have to do so because their pensions do not meet their day-to-day expenses.
The research showed that a quarter of over 55s in Britain have applied for a loan, overdraft or credit card within the past 12 months.
Across the UK, only 43% of over 55s do not owe money on credit.
Key spokesman Dean Mirfin said: “Nearly one in five over-65s expect to, or have already borrowed, money in retirement and say the ability to borrow is important in order to be able to fund major expenses and maintain their standard of living.
“Recovery in the wider economy is feeding through to pensioners, but low annuity rates and the lingering effects of endowment mis-selling means retirement incomes remain under pressure.”
The research did find that gaining credit in the first place can be a problem for the over 55s, particularly for those over 65. 12% of over 55s have been turned down by lenders who are acting with caution after the financial crisis. Credit card applications accounted for 70% of these rejections.
Many banks impose age limits on loans. While the typical borrower under 65 could choose from as many as 85 loans, only 44 were available to those aged over 65.
If you are struggling with debts and want to discuss your options, call The Debt Advisor today on 0800 0851 825 to speak with one of our advisors. If you’re calling from a mobile, you can reach us on 0161 868 2500.09