Page 46 - Phonebox Magazine July 2016

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Finance Matters
Latest ndings show level of debt for retirees falling
There has been great focus over the last few years on people’s nances in retirement, not least due to demographic changes that mean it is a growing sector but also due to changes in the retirement age and the increased exibility of pensions.
In light of this, the latest ndings from Prudential’s annual survey* into the nancial plans and aspirations of people planning to retire in the year ahead make interesting reading.
It shows that of those planning to retire over the course of the next 12 months, the amount of money they owe has fallen for the fourth year in a row to an average of £18,800, a fall of £3,000 or 14 percent from last year and a drop of nearly £20,000 since 2012 when the average amount owed was £38,200. For some (unexplained) reason there is wide disparity between the sexes, with women seeing a big fall in their debts compared with last year – more than £7,000 lower than in 2015 - whilst men’s debt is virtually unchanged.
For those in debt, the biggest source is money owed on credit cards (51%), whilst those owing money on their mortgage is 33%.
However, the gure for mortgages has dropped steeply from 43% last year. This may be due to the people retiring at a later age and, therefore, having longer to pay this o than before.
These ndings are welcome news but with the number of years we are expected to spend in retirement in the future, it is increasingly important to make sure you have a coherent strategy to ensure your post working life is enjoyed in a nancially sound environment.
If you would like to discuss or review your own plans for retirement then please call us. Initial meetings are without charge and we are happy to come to see you in the comfort of your own home. See our advert below.
This article does not constitute advice and should not be taken as a recommendation to undertake any course of action mentioned without consulting a relevant professional.
* Prudential Class of 2016 – Feb 2016
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46 Phonebox Magazine | July 2016
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