It has been revealed in a study that one in ten pensioners aged 75 or over still have a mortgage to pay.
The study was taken out by Aviva with them interviewing 11,600 people who were aged 55 years and over.
Their findings showed the size of the loan’s that homeowners have are around £52,500 which shows how large a pensioners debt can be, with the report revealing how the cost of living on a basic pension can make an impact on economic prices.
One in five are surviving on an income of £24 or less each day with 20% of people living on less than £750 a month to pay mortgages and bills.
The typical person over the age of 55 has debts of just under £20,000 at the start of this year but this has now increased a little to £22,000.
These figures don’t include a mortgage payment but stand for other debts such as overdrafts, credit cards and loans.
With fuel bills costing more and petrol prices increasing there have been cases where people who have retired have had to take on part time work to cover the costs of living.
The findings highlighted how people don’t think about retirement or leaving work until they are around 48 years old.
It also showed how Britain’s culture of debt is hitting older people of society with a rise in the last six months of more pensioners still having mortgages.
In recent months there has been a rise in the amount of people over 75 years old that have mortgages with 5% in June, 7% in September and now 10% in December.
As the information has shown a significant amount of money can still be owed into retirement if young people don’t take charge of their future.
Young people are being urged to start thinking about the future to limit the amount of debt that may occur in later life even though some may not have a house yet.
Making small changes such as setting up a savings account and putting a bit of money into it each month could prove worthwhile for them in the long run.
Even though it has been revealed some pensioners are still paying off a mortgage the majority have managed to be debt free with three out of four owning their own home.
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By Amanda Bainbridge