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Downsize in retirement 'to help pay off debts'
Pensioners and people entering retirement can help to reduce their levels of debt by downsizing and releasing some capital, one pensions expert has said.
Dr Ros Altmann, director general of Saga, explained that the most common form of debt among retirees is mortgage debt.
"Of course that's less worrying then some of the credit cards and other debt that some people are carrying because at least you have an asset to back that debt," she said.
However, Dr Altmann highlighted the growing concern of the number of people in their 50s who still have large amounts of debt, something that they would normally have been expected to pay off while in employment.
"It's hard to see how they are going to be able to afford to repay debt while they are no longer working," the expert remarked.
Aviva's latest Real Retirement Report also highlights this issue. It reveals that 23 per cent of retirees do not expect to be debt-free until they are at least 75-years-old.
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Dr Ros Altmann, director general of Saga, explained that the most common form of debt among retirees is mortgage debt.
"Of course that's less worrying then some of the credit cards and other debt that some people are carrying because at least you have an asset to back that debt," she said.
However, Dr Altmann highlighted the growing concern of the number of people in their 50s who still have large amounts of debt, something that they would normally have been expected to pay off while in employment.
"It's hard to see how they are going to be able to afford to repay debt while they are no longer working," the expert remarked.
Aviva's latest Real Retirement Report also highlights this issue. It reveals that 23 per cent of retirees do not expect to be debt-free until they are at least 75-years-old.
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Published: 14/03/2011
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