Aim to retire debt-free, MAT advises
Brits approaching retirement should do their utmost to pay off debts before they leave employment, a consumer advice charity warned this week.
Anyone aged over-50 should strive to pay off debts as soon as possible to ensure they have a comfortable retirement, the Money Advice Trust (MAT) said.
The MAT made the remarks following reports from Scottish Widows showing a rising debt burden on pensioners.
Over-65s now owe an average of £7,344 in non-mortgage debt, up from £5,930 in 2007, Scottish Widows found.
“For those approaching retirement, it is important to try and pay off your debts because whatever you have paid into your pension now is not going to increase whereas if you are still working you may get a better job or receive a pay rise,” said Becky Wilks, MAT spokesperson.
One in five people who contact the MAT for money advice are over-50.