Retirees manage mortgage and personal debt of £105bn

The UK's retirement nation collectively manages mortgage and personal debt to the tune of £105.5bn, according to research from MGM Advantage. 13% of retirees are managing mortgage debts totalling £76bn, while 34% of retired people are managing loans, overdrafts and credit card debts worth a cumulative £29.5bn.
 
Andrew Tully, pensions technical director, MGM Advantage said: "These figures are alarming and show the pressure people face on a daily basis trying to balance the household budget. Although many people consider themselves retired they are continuing to pay off their mortgage, some with quite substantial balances. Dig a little deeper and many people are working part time, sometimes through choice but often simply to make ends meet."
 
The research also shows 6% of retired people aged 55 and over are working part-time to supplement their incomes in retirement.
 
Tully concluded: "Talking about debt in retirement will be a taboo for many people who find themselves in this position. But there are ways retirees can access practical help and advice."
 
MGM Advantage has published a checklist of things for people to consider when making important decisions at retirement:
 
1. Claim all state benefits to which you are entitled, to check, go to gov.uk/benefits-adviser
 
Data suggests that pensioners are missing out on up to £5 billion a year in unclaimed pension credit, housing and council tax benefits, as well as attendance and disability living allowances
 
2. Keep a track on any old personal or occupational pension arrangements. If you think you might have lost track of an old pension arrangement, you can check via the Department for Work and Pensions tracing service here gov.uk/find-lost-pension
 
3. You can check if you have any old savings accounts which you might have lost touch with over the years by going to unclaimedassets.co.uk
 
4. Don't just accept the annuity rate offered by your pension provider. You should shop around for the best rate and you might qualify for an enhanced rate because of lifestyle and/or pre-existing medical conditions
 
5. Seek professional financial advice as this will help you get the best product and rate for your individual circumstances. To find an independent adviser go to unbiased.co.uk
 
6. You may have old National Savings accounts or Premium Bonds. To check for unclaimed prizes please go to mylostaccount.org.uk or contact NS&I here nsandi.com for further information.
 
Seven in ten retirees (70%) own their own homes outright with no mortgage, while 16% live in rented accommodation. 2% of retirees live with family or in other types of accommodation, while 13% own their property with a mortgage.