One in five 'will retire with debts'

Nearly one in five (18 per cent) of those planning to retire in 2012 will have outstanding debts when they leave the working world, according to figures released this month by Prudential (January 25th).
 
Releasing its Class of 2012 research, it was discovered that the average amount owed by retirees in debt is £38,200 - an often-insurmountable figure for those surviving on a state pension or limited income, unlike many people with property assets protected by landlords insurance.
 
Luckily, the proportion of people retiring in debt this year has dropped from 20 per cent to 18 per cent in 2011. This is not without its own issue, though: the average amount owed has risen by over £5,000, after last year's average debt figure was £33,100.
 
Furthermore, men retiring this year with debts are likely to owe more than women, dealing with an average of £45,300 instead of the £29,400 that females owe.
 
Prudential retirement income expert Vince Smith-Hughes said that people should remember the services offered by the Citizens Advice Bureau and Money Advice Trust, adding: "Retiring with outstanding debts could be a sign of a lack of financial planning. It is important therefore for those still at work to save as much as possible as early as possible, and to consult a financial adviser to help them plan for a comfortable retirement."