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02 February 2018

Pensioners retiring in debt owe average £33,900

2018

Vince Smith-Hughes,
Head of Business Development

  • Nearly one in five expecting to retire this year still have debts to clear
  • Credit cards and mortgages are the biggest sources of debt for the Class of 2018
  • Paying off debt in retirement will take an average three-and-a-half years and cost £285 a month

Debt in retirement is continuing to climb with nearly one in five expecting to stop work this year owing an average £33,900, according to new research by Prudential1.

Prudential’s annual research into the financial plans and aspirations of people planning to retire in the year ahead is now into its 11th year. This year’s retirees, the Class of 2018, have debts nearly 40 per cent higher than those who expected to retire last year.

The average debt burden has increased for the second year in a row and is now 80 per cent higher than the low of £18,800 recorded in 2016. There is some good news as the proportion of people retiring in debt has fallen to 19 per cent from 25 per cent in 2017.

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M&G plc is a company incorporated and with its principal place of business in England, and its affiliated companies constitute a leading savings and investments business. M&G plc is the direct parent company of The Prudential Assurance Company Limited. The Prudential Assurance Company Limited is not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in England and Wales.

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M&G plc, incorporated and registered in England and Wales. Registered office: 10 Fenchurch Avenue, London EC3M 5AG. Registered number 11444019. M&G plc is a holding company, some of whose subsidiaries are authorised and regulated, as applicable, by the Prudential Regulation Authority and the Financial Conduct Authority.

M&G plc is a company incorporated and with its principal place of business in England, and its affiliated companies constitute a leading savings and investments business. M&G plc is the direct parent company of The Prudential Assurance Company Limited. The Prudential Assurance Company Limited is not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in England and Wales.

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M&G plc is a company incorporated and with its principal place of business in England, and its affiliated companies constitute a leading savings and investments business. M&G plc is the direct parent company of The Prudential Assurance Company Limited. The Prudential Assurance Company Limited is not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in England and Wales.