Many pensioners 'still paying off mortgages'

Thursday, April 29th 2010

Financial commitments could remain high for many Britons, even as they enter retirement.

According to a report from Key Retirement Solutions, some 27 per cent of all pensioners continue to make mortgage repayments.

The average sum owed by this group is £45,602 and approximately 20 per cent of pensioners have credit card debt averaging £8,967.

Andy Pratt, chief operating officer at Alexander Hall, says the finding is higher than he expected.

"I would be very surprised if there was just one factor – you will probably find it is a combination of factors," he explains.

People may be helping their children with their finances or keeping their mortgage as a cheaper way to borrow money than some other debts.

Mr Pratt advises clients look at ways of restructuring debt and ensure they maintain contact with lenders for information on how to do this.

The Citizens Advice Bureau also offers tips for those with financial queries.