An increasing number of pensioners are placing more financial pressure on themselves by taking on debt, just so that they are able to cope with the increase in living costs. A large number of the already retired are already living on a smaller income than they would like after having not saved an adequate amount when they were working.
Research has shown that one in three retirees said that their income was not enough to secure them the comfortable retirement they had hoped for. This has made some more reliant on the state pension than they should be.
Can’t pay loans back
A survey carried out by Age UK showed the rise in the number of older Britons burdening themselves with more debt. 19% of these people were concerned about the amount of money they owe, since they have limited opportunities to pay them money back.
20% of retirees are still paying their mortgage, credit card or a loan.
Out of all the pensioners that had been polled, 11% had said that they would have to borrow just to pay off mortgage or pay their rent, while a third did not feel that that their pension income or savings were enough to ensure a financially stable future.
Nearly all pensioners have been hit hard by low interest rates on their savings, as well as reduced annuity rates when they reach their retirement.
Age UK have called on these troubled pensioners to claim all the money they are entitled to from the Government in order to ease the pressure they are facing from living costs and bills. They have even launched a campaign, which they are calling ‘More Money In Your Pocket’, just to encourage people to claim benefits.
Claim money you are entitled to
The survey also revealed that 72% of people who claimed benefits said that the extra money had made a huge difference to their life.
Figures show that there are 1.8 million pensioners who live in poverty, yet £5.5 billion in benefits go untouched each year. Making the situation worse is the fact that 1.6 million people are failing to claim pension credit. This generation must learn to look differently at receiving financial assistance, as they have let their pride get in the way of easing their financial burdens.
“It is extremely worrying that such a high number of older people report having debts and have had to borrow money just to keep a roof over their heads,” said Michelle Mitchell, director general at Age UK.
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