Around one in five over 55s retiring this year will owe an average £38,200 in debts, according to financial firm Prudential.
This year’s retirees face increasing debt problems as the figures are 15% up on the average debts of £33,100 for their counterparts 12 months ago.
Mortgages and credit card bills make up most of the debt that are costing 3260 to service each month – around 19% of their average £1,290 monthly income.
On average, over 55s will take around four years to clear their debts, while 8% reckon they will never be able to afford to repay the cash they owe.
A quarter (25%) reckon they will spend £500 on debt payments.
Men retiring this year are likely to have more debt than women – an average £45,300 compared to £29,400.
Vince Smith-Hughes, Prudential’s retirement income expert, said: “With a manageable repayment programme in place, debts need not become an issue for this year’s retirees – and there is plenty of help available through free charities.
“Retiring with outstanding debts could be a sign of a lack of financial planning. It is important for those still working to save as much as possible as early as possible, and to consult a financial adviser to help them plan for a comfortable retirement.”
The research also shows that over 55s in Wales planning to retire this year are more likely to have debts (21%) compared with those in the East Midlands, who are the least likely (11%).
Meanwhile, a financial report from another financial firm, Aviva, claims family unsecured debt has increased by 48% in the past 12 months to just under £8,000 per household.
At the same time, typical monthly net income for families has risen by just 7% to £2,066, from£1,937 12 months ago.
Aviva claims this shows families are carrying and increasing their debts rather than paying them down.
