People over the age of 55 years have become more worried about their long-term debts, with a staggering 15 percent believing that they will never be able to pay off their debts, says a research conducted by Aviva.
The research further found that 23% of older people feared that they will be debt free after 75 years of age only.
The Aviva research also found that more than 20% people above 55 years are still making payments and the average amount owed by people have grown by around 20 percent over the last 12 months to £65, 107 in 2011 from £54,567 in 2010.
Nearly one third of people over 55 years of age have an unsecured debt outstanding, mostly personal loans and credit card debts, which they are unable to clear.
13 percent of older people admitted that expenditure on non-essential items such as holidays were to blame for their indebtedness, while 10% blamed their poor money management skills.
Nearly one third of the older people surveyed blamed higher cost of living for their debts while 29% said they borrowed money to make an essential purchase. Another 18% blamed inadequate pay or joblessness for their debts.
“While there isn’t one single cause for people’s money worries, the combination of economic and social factors over the last year has impacted on many individuals’ plans for their retirement years”, said Clive Bolton – retirement director at Aviva.
“We know from previous reports that many people are looking to work into retirement and for people in debt this may be a good solution”, he added.