The average outstanding mortgage debt amongst retired people with a mortgage is £50,100, up from £42,100 in 2008 according to Scottish Widows. It also found that the average outstanding non-mortgage debt amongst retired people with debt is £7,344, up from £6,732 in 2008 and £5,930 in 2007.
Scottish Widows says, as a result, the total nationwide debt held by those in retirement £90.41bn, up from £72.3bn last year.
Scottish Widows head of pensions market development Ian Naismith says: “The situation for retirees in debt is not getting any better, and an increase of eight thousand in the average amount of mortgage debt is alarming.”
Lenders tightening lending criteria for elderly people may compound this problem – Abbey recently restricted its age range to 75 years old.
The research also shows that one in fourteen have the added burden of one or more grown-up dependent children.