Debt management could be needed as people ‘fail to save’

Debt management plans may become more important for retirees as increasing numbers are finding themselves without sufficient savings for life after work, according to new research.

Four out of ten Brits told Yorkshire Bank Isas and Investments that they have no real savings for old age, while more than a quarter (27 per cent) are looking to their children to help them out in retirement, suggesting that debt management may become an issue if they can’t.

"By not saving for the future, parents appear to be aware they’re storing up hardship for themselves," said Gary Lumby, Yorkshire Bank’s head of retail.

"Many are already presuming their children - the Bank of Son and Daughter - might be the answer to all their financial problems."

The concern over a lack of savings is driving some people to reconsider their living situation. According to Yorkshire Bank, 16 per cent of 55-64-year-olds are looking to downsize their home to free-up some funding.

This week, charity Credit Action warned that charges imposed by companies on customers that do not pay their bills electronically could hit elderly people hard, which could force them into money problems.

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