Older people owe more

Debt levels are soaring among the over-55s as a result of falling income levels over the past year, according to new research.

15:30 02 June 2004

Debt levels are soaring among the over-55s as a result of falling income levels over the past year, according to new research.

A study by Prudential found that around 776,000 people have been forced to take on more debt over the last 12 months, after seeing their disposable income drop, Consumer website ThisIsMoney reports. This is due in part to a fall in the average value of savings held.

According to Prudential, around 4 million UK residents aged 55 and over have less money coming in now than they did just a year ago. 24 per cent of people aged 65 and over said the value of their savings had fallen over the past 12 months, compared with just 12 per cent who reported an increase.

Debt levels look set to keep climbing - with an estimated 258,000 people over the age of 55 planning to add to their existing levels of debt, claims Prudential.

Angus Maciver, director of research at Prudential, said: "More than 2 million people currently continue to work in retirement and we expect this number to grow - especially as they have over 1 billion in unsecured debt to service."